SCCD: F.S.

AFRICAN DEVELOPMENT BANK AFRICAN DEVELOPMENT FUND

ADB/BD/WP/2014/151 ADF/BD/WP/2014/101

16 September 2014

Prepared by: ORWA/ONRI/ORNG Original: English

Probable Date of Presentation to the Committee

Operations/Development Effectiveness

(CODE)

30 September 2014

FOR CONSIDERATION

MEMORANDUM

TO : THE BOARDS OF DIRECTORS

FROM : Cecilia AKINTOMIDE

Secretary General

SUBJECT : COMBINED MID-TERM REVIEW AND REGIONAL PORTFOLIO

PERFORMANCE REVIEW OF THE REGIONAL INTEGRATION

STRATEGY PAPER FOR WEST AFRICA 2011 – 2015*

Please find attached the above-mentioned document.

Attach:

Cc.: The President

*Questions on this document should be referred to:

Mr. F. PERRAULT Director ORWA Extension 2054

Mr. O. DORE Director ORNG Extension 6650

Mr. J. K. LITSE Director ONRI Extension 2047

Mrs. B. BARUNGI Lead Economist ORNG Extension 6651

Mr. F. BAKOUP Lead Economist ORWA Extension 4449

Mr. E. SANTI Chief Regional Economist ORWA Extension 4202

Mr. K. DIALLO Chief CPO ORWA Extension 4201

Mrs. A. VALKO CELESTINO Young Professional ORWA Extension 3881

AFRICAN DEVELOPMENT BANK GROUP

COMBINED MID-TERM REVIEW AND REGIONAL PORTFOLIO

PERFORMANCE REVIEW OF THE REGIONAL INTEGRATION

STRATEGY PAPER FOR WEST AFRICA 2011 – 2015

ORWA/ONRI/ORNG/DEPARTMENTS

September 2014

TABLE OF CONTENTS

LIST OF ACRONYMS AND ABBREVIATIONS ..................................................................... i

EXECUTIVE SUMMARY ......................................................................................................... iii

I. INTRODUCTION AND OBJECTIVES OF THE MTR-RPPR ..................................... 1

1.1 Introduction and background

1.2 Objectives and scope of the MTR for the WA-RISP 2011-2015 .......................................... 1

II. UPDATE ON REGIONAL CONTEXT AND PROSPECT ............................................ 2

2.1 Overview ............................................................................................................................... 2

2.2 Political and Security Developments ..................................................................................... 2

2.3 Economic Developments ....................................................................................................... 3

2.4 Social and Environmental Developments ............................................................................. 5

2.5 Regional Infrastructure .......................................................................................................... 7

2.6 Regional Integration Strategy Framework Developments .................................................... 8

2.7 Aid Coordination and Harmonization Mechanisms .............................................................. 9

2.8 Challenges and Opportunities .............................................................................................. 10

III. RISP IMPLEMENTATION: RESULTS ACHIEVED AT MID-TERM..................... 11

3.1 RISP Objectives and Expected Results ............................................................................... 11

3.2 Status of RISP Outputs and Outcomes at Mid-term ............................................................ 12

3.3 Bank Group Regional Portfolio Performance Review 12

3.4 Regional Portfolio Improvement Plan ................................................................................. 14

IV. LESSONS LEARNED AT MID-TERM 15

4.1 General Lessons ................................................................................................................... 15

4.2 Lessons and Recommendations for the Bank ...................................................................... 15

4.3 Lessons and Recommendations for the RECs ..................................................................... 16

4.4 Lessons and Recommendations for the Governments ......................................................... 16

4.5 Lessons and Recommendations for the Development Partners .......................................... 16

V. BANK GROUP REGIONAL INTEGRATION STRATEGY ADJUSTMENTS FOR THE

REMAINING WA-RISP PERIOD 16

5.1 Objective and pillars ............................................................................................................ 16

5.2 Criteria for Defining the Strategy for the Remaining WA-RISP Period ............................. 17

5.3 Key Deliverables and Targets ............................................................................................. 17

5.3.1 The RISP Indicative Pipeline ..................................................................................... 17

5.3.2 Pillar I: Regional Infrastructure Development ........................................................... 17

5.3.3 Pillar II: Capacity Building for Effective Implementation of the Regional Integration

Agenda ....................................................................................................................... 17

5.3.4 Areas of Special Emphasis ......................................................................................... 18

5.3.5 Economic and Sector Work ....................................................................................... 19 5.4 Institutional Arrangements and Resources ................................................................................. 19 5.5 Potential Risks and Mitigation Measures ............................................................................ 19

VI. CONCLUSION AND RECOMMENDATION ............................................................... 20

iii

FIGURES & TABLES Figure 1: Evolution of Commodity Prices

Figure 2: Breakdown of Regional Portfolio by Sectors

Table 1: Ibrahim Index of African Governance and Global Peace index for 2013

Table 2: Doing Business Report global ranking, 2013-2014

Table 3: Logistics Performance Index scores, on a scale from 1-5, for the years 2010-2012-2014

BOXES Box 1: Nigeria’s Role in Regional Integration

Box 2: Integration through private sector, the case of ECOBANK

Box 3: Some Observations on Regional Portfolio Implementation

Box 4: Causes of Limited Portfolio Performance

ANNEXES

ANNEXES Annex 1. ECOWAS Monetary Cooperation Programme Convergence Criteria

Annex 2: Indicative Program of Regional Operations and Economic and Sector Work as per the WA RISP 2011-

2015 and its effective implementation

Annex 3: New Indicative Regional Operations and ESW In Addition to Those Identified in the WA RISP 2011-2015

Annex 4a: Status of RISP Outputs at Mid-term

Annex 4b: Status of RISP Outcomes at Mid-term

Annex 5: List of Multinational Operations in West Africa

Annex 6: Overview of Regional Operations Directly Managed by the RECs

Annex 7: WA Regional Portfolio Improvement Plan

Annex 8: Consultative Process and Timeframe for the Preparation of the WA-RISP MTR

Annex 9: Conclusions of the Regional Dialogue Mission in Abuja, March 2014

Annex 10: Original Indicative Results Matrix of the WA-RISP 2011-2015

Annex 11: Revised Indicative Results Matrix of the WA-RISP 2011-2015 at MTR

Annex 12: Alignment between CSP and WA-RISP Pillars

The Mid-term Review for the West Africa RISP 2011-2015 was prepared under the guidance of Franck PERRAULT,

Director of ORWA, Ousmane DORE, Director of ORNG and Janvier LITSE, Director of ONRI. This review benefitted

from the outcome of consultations with regional stakeholders in West Africa, including the ECOWAS Commission and

the WAEMU Commission. The consultations were carried out during the MTR; a regional workshop was conducted in

Abuja (Nigeria) on March 17-18, 2014.

The task team included: Emanuele SANTI, Chief Regional Economist, ORWA; Barbara BARUNGI, Lead Economist,

ORNG (task managers); Ferdinand BAKOUP, Lead Economist, ORWA; Korka DIALLO, Chief Country Program

Officer, ORWA; Samba KAMARA, Country Program Officer, ORWA; Anne VALKO CELESTINO, Young

Professional, ORWA; Mohamed EL DAHSHAN, Consultant, ORWA; Christian Kitenge M. KINGOMBE, Chief

Trade and Regional Integration Officer, ONRI.1, Inye BRIGGS, Principal Trade Regulatory Officer, ONRI.2; Gabriel

MOUGANI, Chief Regional Integration Economist, ONRI.2; Ibrahim Ahmed AMADOU, Chief Agricultural

Economist, OSAN; Fessou LAWSON, Principal Statistician, ESTA.1; May BABIKER, Principal Socio-economist,

ORSF.1; Bitsat YOHANNES KASSAHUN, Infrastructure Environment Policy Expert, ORSF.2; ORWA and ORNG

Country Economists and CPOs.

The report benefited from inputs received from: Clotilde BAI, Architect, ONRI.1; Jean-Noël ILBOUDO, Infrastructure

Engineer, OITC; Pamphile CODO, Principal Infrastructure Specialist, ONRI.1; Usman MOHAMMED, Principal

Disbursement Officer, ORNG; Saloua SEHILI, Principal Policy Economist, COSP; Baba ABDULAI, Principal

Procurement Officer, ORNG; Danladi EBBAH, Agricultural Engineer, ORNG; Line PICARD, Chief Portfolio Officer,

OPSM 5; Tapio NAULA, Transport Economist, OICT1; Jeremy AGUMA, Transport Economist, OITC.1; Modibo

SANGARE, Coordinator Mano River Initiative, ORCE, Tom MUGOYA, Principal Water & Sanitation Engineer,

OWAS.1; Anouar CHAOUCH, Statistics Assistant, ESTA1, as well as from members of the Country Teams.

The report benefited from final comments received from Lawrence TAWAH, Assistant To Vice-President, SAOR;

Assitan DIARRA-THIOUNE, Regional Economist, ORNA; Tilahun TEMESGEN, Chief Regional Economist, EARC;

Emelly MUTAMBATSERE, Principal Research Economist, SARC.

Peer Reviewers of the MTR and RPPR: Mohamed CHERIF, Chief Country Program Officer, SARC; Yasser AHMAD,

Country Program Officer, ORNA; Mamadou TANGARA, Senior Country Program Officer, TDFO; Donatien Akoupo

KOUASSI, Principal Country Programme Officer, EARC.

Peer Reviewers of the Pre-mission Concept Note: Kennedy K MBEKEANI, Regional Economist, SARC; Tilahun

TEMESGEN, Chief Regional Economist, EARC; Yasser AHMAD, Country Programm Officer, ORNA.

i

LIST OF ACRONYMS AND ABBREVIATIONS

ACE African Coast to Europe

AfDB African Development Bank

ADF African Development Fund

AFD French Agency for Development (Agence Française de Développement)

AFRISTAT Economic and Statistical Observatory for Sub-Saharan Africa

AGIR Alliance Globale pour l’Initiative Résilience

AfTRA Africa Trade Fund

BCEAO Central Bank of West African States (Banque Centrale des Etats d’Afrique de l’Ouest)

BOAD West African Development Bank (Banque Ouest Africaine de Développement)

CEMAC Economic and Monetary Community of Central Africa

CET Common External Tariff

CILSS Comité Permanent Inter-Etats de Lutte contre la Sècheresse dans le Sahel

CLSG Côte d’Ivoire, Liberia, Sierra-Leone, Guinea

CMO Corridor Management Organizations

COMESA Common Market for Eastern and Southern Africa

CSP Country Strategy Paper

DP Development Partner

EBID ECOWAS Bank for Investment and Development

ECOWAS Economic Community Of West African States

EIB European Investment Bank

ENSEA Ecole Nationale Supérieure de Statistique et d’Economie Appliquée, Côte d’Ivoire

EPA Economic Partnership Agreement

EPSA Enhanced Private Sector Assistance

ESEA Ecole Supérieure d’Economie Appliquée, Sénégal (formerly Ecole Nationale d’Economie

Appliquée)

ESW Economic and Sector Work

EU European Union

FDI Foreign Direct Investment

FSF Fragile States Facility

GDP Gross Domestic Product

GPI Global Peace Index

ICP-Africa International Comparison Program for Africa

ICT Information and Communications Technology

IIAG Ibrahim Index of African Governance

IsDB Islamic Development Bank

IWRM Integrated Water Resource Management

KFW German Development Bank (KfW Bankengruppe)

MDGs Millennium Development Goals

MRU Mano River Union

MTR Mid Term Review

ii

NEPAD-IPPF New Partnership for Africa’s Development – Infrastructure Project Preparation Facility

NTF Nigeria Trust Fund

ODA Official Development Aid

OECD Organization for Economic Co-operation and Development

OFID OPEC Fund for International Development

OMVG Gambia River Development Organization

OMVS Organisation pour la Mise en Valeur du Fleuve Sénégal

OPEV AfDB’s Operations Evaluation Department

ORWA AfDB’s Regional Department for West Africa

PIDA Program for Infrastructure Development in Africa

PP Problematic Project

P2RS Programme de renforcement de la résilience à l’insécurité alimentaire et nutritionnelle

récurrente au Sahel

RBF Results-Based Framework

RBO River Basin Organizations

REC Regional Economic Community

RIS Regional Integration Strategy

RISP Regional Integration Strategy Paper

RMCs Regional Member Countries

ROs Regional Operations

RPPR Regional Portfolio Performance Review

SCB Statistical Capacity Building Program

SME Small and Medium Enterprises

SPC Special Purpose Company

STC Statistical Training Centers

TYS AfDB’s Ten Year Strategy

UA Unit of Account

UNFPA United Nations Population Fund

WA-RISP West Africa – Regional Integration Strategy Paper

WACS West Africa Cable System

WAEMU West African Economic and Monetary Union

WAMI-IMAO West African Monetary Institute

WAMZ West African Monetary Zone

WAPP West African Power Pool

WB World Bank

WTO World Trade Organization

iii

EXECUTIVE SUMMARY

1. In November 2011, the Board approved the Bank’s Regional Integration Strategy Paper for

West Africa 2011-2015 (WA-RISP), covering a grouping of 15 member countries of Economic

Community of West African States (ECOWAS). Such group has a diverse mix of political,

economic, social and geographic characteristics, ranging from the dominance of Nigeria the regional

heavyweight, to the small size of other national markets, including landlocked countries and an

island state. The WA-RISP is articulated around two pillars, (i) linking regional markets and, (ii)

building capacity for effective implementation of the regional integration agenda.

2. The main objectives of the MTR-RPPR of the Bank’s WA-RISP are (i) to assess the

relevance and effectiveness of the WA-RISP and (ii) propose possible adjustments to current

Bank approaches for enhancing regional integration.

3. Since 2011, West Africa’s growth has accelerated and is estimated to reach 7.4% in 2014,

making it the fastest growing region of the continent. However, the region is still home to some

of the poorest in the continent. Poverty and inequality are high across the region with poverty

levels in some countries averaging more than 60% of the population. Furthermore, gender-related

MDGs and indicators have shown moderate improvements.

4. Arguably one of the most fragile from a political and security stand point, the region is more

exposed to fragile situations since the inception of the strategy, further to the crisis in the Sahel and

the emergences of new terrorist threats.

5. The Regional Integration Strategy Framework remains largely shaped by ECOWAS and its

Vision 2020. Progress in implementing Vision 2020 has been mixed, so is the status of regional

integration, with intra-regional trade still low compared to other groupings.

6. As of December 1st, 2013, the Bank's active regional operations portfolio in West Africa

included 43 operations, for a global amount of UA 667 million and an average disbursement

rate of 31%. The overall implementation status of the WA-RISP is satisfactory: out of the 13

projects provisioned under the two pillars, four were approved between 2011 and 2013, four are in

process or under review, and one is postponed until 2016, while four are on stand-by due to limited

resources. All planned ESWs have been completed, yet some have been refocused in view of the

changing political landscape.

7. Analysis at mid-term supports that the two strategic pillars identified in the WA-RISP

(2011-2015) remain relevant for the remaining period. While the choice of pillars is also

consistent with the Ten Year Strategy, this MTR elaborates on adjustments to strengthen the Bank’s

contribution to the regional integration. These include focusing the first pillar around infrastructure

development and renewed attention at addressing fragility, gender and food security, including

through a new program on resilience in the Sahel.

8. The MTR suggests strengthening Bank support to Sahel and Mano River Union (MRU)

countries, and giving greater focus to the “soft” side of the Bank interventions, by (i) integrating

trade, transit and trade facilitation in all new transport operations; (ii) strengthening technical

assistance on trade facilitation; and (iii) boosting regional knowledge work.

9. The MTR also recognizes the important role of private sector, including through Private

Equity funds, and advocates for a deeper engagement with business organizations at regional level.

10. The MTR suggests a number of measures to improve performance of regional portfolio,

such as strengthening of the role of the Bank’s field offices in managing regional projects;

technical assistance on Bank’s procedures; setting-up and building capacity of dedicated units to

oversee Bank operations in selected RECs.

1

I. INTRODUCTION AND OBJECTIVES OF THE MTR-RPPR

1.1 Introduction and background

1.1.1 The West Africa region as a whole remains among the least integrated regions in the

world from a trade perspective. Despite good progress in the WAEMU region, where intra-

regional trade is 13.5%, the share of ECOWAS intra-regional trade has remained low, with around

7.5% of total trade. This is lower than many other Sub-Saharan Regional Economic Communities

(RECs), and it is generally lower compared to major RECs outside of Sub-Saharan Africa1.

1.1.2 In November 2011, the Board approved the Bank’s Regional Integration Strategy Paper

for West Africa 2011-2015 (WA-RISP), covering all 15 member countries of ECOWAS with a

diverse mix of political, economic, social and geographic characteristics2. All ECOWAS countries

are eligible for ADF resources only, with the exceptions of Nigeria and Cabo Verde, eligible for

ADB resources only, with access to ADF allocations3.

1.1.3 The overarching goal of the Regional Integration Strategy Paper 2011-2015 (RISP) is to

help advance the integration agenda and facilitate regional solutions. It specifically provides the

strategic framework for selecting and prioritizing Bank’s analytical, operational, and partnership

activities in support of regional integration in West Africa over that period.

1.1.4 The WA-RISP proposed Bank support that focuses on two pillars, namely (i) linking

regional markets and, (ii) building capacity for effective implementation of the regional

integration agenda. This strategy was aligned with ECOWAS’ Vision 2020 Regional Strategic

Plan, and the outcome of consultations with regional stakeholders.

1.2 Objectives and scope of the MTR for the WA-RISP 2011-2015

1.2.1 The main objectives of the MTR of the Bank’s WA-RISP are to assess the relevance,

performance and effectiveness of the WA-RISP in support to West Africa integration and

propose possible adjustments to current Bank approaches for enhancing regional integration.

More specifically the MTR reviews (i) recent political, economic, social and environmental

developments in the region, as well as new challenges and opportunities that may have affected the

RISP; (ii) the role of private sector engagement in areas supported by the RISP; (iii) developments in

donors’ support for regional integration in West Africa; (iv) the alignment of the RISP with the

Bank’s Ten Year strategy (TYS); and (v) recent progress in terms of regional integration.

1.2.2 In addition, the MTR assesses the experience in Regional and Country Dialogue activities

pertaining to the achievement of the RISP, while identifying key lessons.

1.2.3 Finally, it proposes revisions to the Bank strategy for regional integration in West Africa for the remaining period, confirming the two pillars, updating on deliverables and targets. The MTR

entailed (i) desk review of the implementation of the Bank’s regional operations, (ii) interviews with

task managers, sector teams, country directors and resident representatives (iii) a consultation

mission with officials from ECOWAS, other key RECs and stakeholders, including development

partners (see Annex 9).

1 According to the UNCTAD Handbook of Statistics 2013, the intra-trade of the main regional groups in Africa and the

world is as follows: EU27, 61.8%; NAFTA, 48.5%; EAC, 20.9%; MERCOSUR, 14.9%; WAEMU, 13.5%; SADC,

11.7%; ECOWAS, 7.5%; COMESA, 6.9%; UMA, 3.3%; ECCAS, 0.8%. 2 The countries of the ECOWAS region are Benin, Burkina Faso, Cabo Verde, Côte d’Ivoire, Gambia, Ghana, Guinea,

Guinea Bissau, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone, and Togo. Eight of the countries are Francophone,

five are Anglophone and two are Lusophone. The total population of the region in 2010 was 302.69 million. The region

is home to 29.3 percent of the continent’s population. 3 The Bank recently revised its Credit Policy, which will enable various ADF countries to benefit from ADB resources as

well.

2

II. UPDATE ON REGIONAL CONTEXT AND PROSPECTS

2.1. Overview

2.1.1 The West Africa region is a politically and culturally complex and heterogonous region,

ranging from the dominance of Nigeria, which accounts for an half of the region’s population and

has the largest economy in the region, accounting for around 80% of its GDP4; the small size of other

national markets, the limited market access of the three landlocked countries (Burkina Faso, Mali

and Niger); and a number of emerging and more diversified economies, namely Ghana, Senegal and

Côte d’Ivoire, as well as the Island States like Cabo Verde.

2.1.2 West Africa is also one of the most fragile regions in the continent from a political and

security stand point. With nearly half of its countries classified as fragile states, and some of the

countries also facing severe drought and food and public security challenges.

2.1.3 Almost all of the West African countries continue to suffer from a number of

vulnerabilities due to external shocks, environmental pressures due to drought, fluctuations in

commodity prices, high levels of unemployed youth population, which combined with porous

borders, often create a fertile ground for highly organized illegal activities and instability.

2.2. Political and Security Developments

2.2.1 Since the inception of the RISP, the region has been destabilized by coups d’état in Mali

and Guinea Bissau, and it has become the battlefield of a new wave of attacks by radical

groups. Reports on drug trafficking are of increasing concern. The region’s often porous borders and

coastlines, and wide desert spaces make it one of the hardest to control. Many of the regions’

problems are beyond the capacity of individual states to solve—especially states with limited

capacity and cohesion, making the case for regional cooperation even more compelling.

2.2.2 In the Sahel region5, countries face various destabilizing factors whose combination

continues to undermine livelihoods and promote an environment of insecurity. Lack of strong

local government structures in marginalized areas continues to make them a safe haven for radical

elements. These in turn promote their agendas by harnessing the discontent of young people with

little economic opportunities and the sentiments for autonomy based on a sense of exclusion.

2.2.3 In the MRU countries6, the effects of decades of conflict are evident in all aspects of life,

even though the region is enjoying relatively continued peace. Within this backdrop, the priorities

of the Heads of States in terms of regional peace and security continue to be: (i) organizing and

conducting joint patrols of the borders; (ii) developing, facilitating, fostering and promoting cordial

relations between the people of the border regions through cultural, social and sporting activities; (iii)

exchanging information and investigating reports or observations of all border security activities; and

(iv) monitoring the movement of goods at the border posts to minimize/avert the trafficking of illegal

arms and drugs and also smuggling of minerals.

2.2.4 Nevertheless, there are recent positive signs of stabilization, further to the end of Touareg

rebellion in 2013 and the return to an elected leadership in Mali, as well as the political transition in

Côte d’Ivoire, Guinea and Guinea Bissau. Peaceful elections in Ghana, Guinea Bissau, Mali and

Senegal bode well for political stability in the wider region.

2.2.5 The economies of the region would nevertheless still remain vulnerable to possible

drawbacks of the political process. The years 2014 and 2015 will be rife with electoral exercises in

4 Further to the last rebasing of its GDP, a collaborative effort of several organizations, including the African

Development Bank, Nigeria’s GDP was calculated to be $510 billion, a whopping 94 percent jump from the former

figure of $262 billion. 5 The Sahel stretches from Mauritania to Eritrea, including Chad and Sudan, with three of the five Sahelian countries in

greatest need are in West Africa: Mali, Burkina Faso and Niger (UN definition). 6 The Mano River Union countries are: Côte d’Ivoire, Liberia, Sierra Leone and Guinea.

3

many of the region’s countries7, with a risk of possible tensions in some of these countries and shift

in political agendas. Other local elections will be held in some countries over the same period.

2.2.6 Most countries are ranked in the bottom half of the latest Global Peace Index (GPI), which measures ongoing domestic and international conflict, societal safety and security, and

militarization (Table 1). However most countries hover around the middle quintile of the ranking

often reflecting the state of low-intensity conflict and safety concerns, rather than widespread

instability.

2.2.7 Despite notable improvements, governance issues remain a concern and possible cause of

political fragility. The region as a whole appears above the African average of Ibrahim Index of

African Governance (IIAG) but the region's countries represent both extremes. Cabo Verde ranks

third continent-wide, and leads the region in Governance. Ghana and Senegal also appear in the top

10 of the ranking. On the other hand, nine countries are below the average, with three countries in

the bottom 10 (Table 1).

Table 1: Ibrahim Index of African Governance and Global Peace index for 2013 (source: Mo

Ibrahim Foundation, Institute for Economics and Peace)

Ca

bo

Ver

de

Gh

an

a

Sen

ega

l

Ben

in

Ga

mb

ia

Bu

rkin

a F

aso

Ma

li

Nig

er

Lib

eria

Sie

rra

Leo

ne

To

go

Nig

eria

Gu

inea

Cô

te d

’Iv

oir

e

Gu

inea

Bis

sau

Wes

t A

fric

a

Afr

ica

GPI N/A 1.9 2.0 2.15 2.1 2.0 2.34 2.4 2.04 1.9 1.9 2.7 2.7 2.7 2.4 N/A N/A

IIAG 76.7 66.8 61 58.7 53.6 53 50.7 50.4 50.3 48 45.8 43.4 43.2 40.9 37.1 52.5 51.6

2.3 Economic Developments

2.3.1 Growth in West Africa has picked up over the past few years, with an expected growth to

near 6.7% in 2013 and estimated to reach 7.4% in 2014. Much of this growth was led by strong

performance in the oil and mining sectors, which made the bulk of the USD 15.1 billion8 FDI inflows

registered in 2012, arguably the largest volume of FDI of any other regions in the continent.9 The oil

and mining sectors remain predominant in Nigeria, and are the main drivers of the unprecedented

high growth in Ghana, Liberia and Sierra Leone in recent years, yet agriculture and services remain

key for the region. Agriculture also counts as an important driver of West African growth and the

service sector has become a main engine of growth in many countries. Services, such as transport,

trade, real estate and public administration, continued to play an important role in 2012; but with new

technologies and financial deepening, diversification in the region is on the rise.10

7 In 2014 Presidential elections are expected in Guinea Bissau and in 2016 in Niger, whereas the Parliament will be

renewed in Guinea Bissau, Liberia and Niger. In 2015 Presidential elections will take place in Burkina Faso, Côte

d’Ivoire, Guinea, Nigeria and Togo, whereas parliamentary elections will take place in Benin and Nigeria. 8 UNCTAD regional trends in FDI http://unctad.org/en/PublicationChapters/wir2013ch2_en.pdf

9 Nigeria, Guinea, Ghana and Niger’s resource sector attracted an estimated 88% of total FDI to the region. Nigeria’s

largest announced greenfield project in 2012 amounted to nearly USD 2 billion to increase oil production. The other large

greenfield projects for Nigeria were in manufacturing and information and communications, signaling some

diversification. Ghana has announced it expects at least $20 billion in investment in the oil industry over the next five

years, primarily from foreign companies9.

10 African Economic Outlook 2013. For instance, the recent rebasing of Nigeria’s GDP pointed to a sharp increase of the

share of services in GDP from 23.6% to almost 52% in 2013, and a rise of manufacturing from 1.9% to 6.8%.

4

Box 1: Nigeria’s Role in Regional Integration

With an estimated population of 167 million, Nigeria is the

region’s largest market and has great potential to be a main

driver of regional integration. With the GDP rebasing, Nigeria

now has the largest economy in Africa and a great potential for

its services and manufacturing sectors. It also attracts half the

FDI coming into the region (45% in 2012). Nevertheless its

intraregional trade has been steadily decreasing, now

constituting less than 1% of the country’s total imports and 3%

of its export. Informal trade networks however are significantly

larger, most notably for agricultural goods, petroleum products,

and re-export trade. On the investment side, the role of Nigeria is

certainly more prominent, with various Nigerian companies

having significant impact in the regional market particularly

banking services, as well as goods (cement, cassava flour, etc.)

to client across West Africa. Closer integration with the region

would require Nigeria to open its markets to regional exports,

but more crucially a change of perspective on the neighboring

countries as partners rather than merely clients. Regional value

chains have a real potential, particularly given the developments

in regional transport and connectivity infrastructure. Increasing

trade volumes will require improvements in regional corridors

reducing frictions related to nontariff barriers, as well as

accountability and transparency in regulations, both on the

national and on the regional level.

2.3.2 Investment within the

West African region has

expanded dramatically in the

past decade. This has been driven

by a strong increase in intra-

regional FDI, primarily from

Nigeria, Ghana, and Côte d’Ivoire

yet they remain rather limited.

2.3.3 But despite the flows of

FDI, West Africa remains a

challenging region to do

business. According to the 2014

World Bank’s Doing Business

Indicator, which ranks countries

and regions according to the ease

of managing business, only one

West African country, namely

Ghana, appears in the top 100

countries. Nine out of 15

countries appear in the bottom

20% of the ranking over 189

countries – as does the regional

average, which would

comparatively place the

ECOWAS region in the 152nd place (see table 2). The lack of competitive environment for business

at country level acts as a major constraint for growth, but also for regional integration.

Table 2: Doing Business Report global ranking, 2013-2014. (Source: The World Bank)

Ghan

a

Cab

o

Ver

de

Sie

rra

Leo

ne

Lib

eria

Nig

eria

Gam

bia

Burk

ina

Fas

o

Mal

i

Togo

Côte

d'I

voir

e

Ben

in

Guin

ea

Guin

ea

Bis

sau

Nig

er

Sen

egal

2014 67 121 142 144 147 150 154 155 157 167 174 175 180 176 178

2013 62 128 137 149 138 148 154 153 159 173 175 179 181 174 176

2.3.5 Naturally, areas of weakness and strength vary. For instance it is easy to start a business in

Liberia, but remarkably difficult to register and transfer property; Nigeria offers the easiest access to

credit in the region but put complex and lengthy procedural hurdles on import and suffers from high

contract enforcement costs. There are also sub-regional hurdles to the investment climate. Investors

point at the difficulty of transitioning from Anglophone countries to the Francophone, and vice-

versa, not only due to comprehension issues but mostly regulatory difficulties as the spirit of the laws

differs significantly between Anglo-Saxon and French-based laws.

2.3.5 Inflows of remittances and illicit capital outflows are also becoming more prominent in

the region with Nigeria taking the center stage. Nigeria remains by far and naturally the largest

recipient of remittances, not only within the ECOWAS region but also in the entire sub-Saharan

Africa11

. Intra-regional remittances are also very important, although often difficult to track. In 2010,

according to Global Financial Integrity the total illicit financial flows in the West Africa region,

11

In 2013, Nigeria received remittances worth about $21 billion out of the total US$32 billion and US$25.8 billion sent

to the SSA and ECOWAS countries, respectively, equivalent of 66% and 81%. This is followed at a very far distance by

Senegal that received about US$1.7 billion or 6.4% of remittances to ECOWAS during the same period.

5

40

50

60

70

80

90

100

110

120

130

140

Figure 1: Evolution of commodity prices January 2011 = 100

Cocoa Beans Cotton

Gold Crude Oil

stood at US$22.6 Billion with Nigeria responsible for US$19.7 billion or 87%. Reducing costs of

remittances and fighting corruption would free up huge resources for development.

2.3.6 West Africa’s countries have endured strong fluctuations in commodity prices over the

past few years, as depicted in Figure 1. The region’s key commodity prices have maintained a

generalized decline in the past two years, with the exception of oil. The sharp decline of price of

Cotton, Gold and Cocoa have hit many countries in the region12

; The relatively good performance of

Oil has benefited Nigeria, while adding

pressure on balance of payments for most

other countries, which remain net importers.

2.3.7 Price stability remained the focus of

the monetary policy thrust in all

ECOWAS countries, yet with mixed

results. While WAEMU countries have

managed to control inflation with fixed

exchange rate pegged to the euro, high

inflation and currency depreciation have been

experienced in WAMZ namely in Nigeria

and Ghana, where currencies have

depreciated and suffered from the impacts of

the US tapering of Quantitative Easing

unfold, and - in the case of Ghana – a sharp

macro-economic deterioration.

2.3.8 West Africa’s economic prospects in

the remaining period depend on global

and domestic factors, which remain somewhat uncertain. The

strengthening of global activity at the end of 2013 and the anticipation of further growth in 2014-

2015, led by a recovery in OECD countries, lend to a more optimistic outlook for West Africa. In a

wake of a lower than expected recovery and a slowdown of emerging economies, downside risks

may materialize, through lower commodity prices (namely cocoa and gold), shrinkages in export

volumes of other goods, lower tourism receipts, official development assistance (ODA), FDI and

worker’s remittances. Possible earlier mentioned political reversal in the region may also have a

major impact, particularly on FDI.

2.4 Social and Environmental Developments

2.4.1 The fastest growing economies in West Africa are still home to some of the poorest in the

continent. Poverty and inequality are high across the region with poverty levels in some countries

averaging more than 60% of the population13

.

2.4.2 Though recognized for positive strides and efforts towards the Millennium Development

Goals (MDGs), West Africa remains largely distant from meeting such goals.14

The high growth

12

Gold, which tops Mali’s exports as well as represents 28% of Ghana’s total exports value (2011), has lost 27% of its

value in the course of 2013. Cotton prices have experienced the largest and progressive decline (59% in the past 3 years)

affecting most countries in the region. Côte d’Ivoire and Ghana, the world’s premier cocoa producers generating 51% of

the world’s output, have endured declining prices for almost two years; while prices have risen over the past year, they

remain below their pre-2011 levels. 13

As of 2012, the countries with the highest number of people living with less than $1.25 a day (PPP) amounted to

83.76% in Liberia, 67.62% in Nigeria, 50.43% in Mali, 48.9% in Guinea Bissau, 47.33% in Benin. Inequality also

exacerbates poverty; this is even more so a problem in such countries as Cabo Verde, Nigeria, the Gambia, Ghana, and

Côte d’Ivoire which lead the region in inequality, displaying the highest Gini coefficients. (Source: World Bank). 14

MDG Report 2013, Assessing Progress in Africa toward the Millennium Development Goals

Data source: IndexMundi, AfDB

6

rate experienced in the region has faced difficulties in translating into major improvements in

inclusiveness and human development15

.

2.4.3 Since the inception of the strategy, gender-related MDGs and gender gap indicators have

broadly shown moderate improvements in the region, particularly in economic and political

participation.16

Economically, women make up the majority of small-scale farmers and yet are

penalized in terms of land rights. In many countries, women cannot become owners of the land they

plough and do not often have the right to inherit it when their husbands die17

.

2.4.4 Women representation in the political landscape varies within the region. Some countries

have made progress towards better participation of women, such as Senegal, with 43% of women in

parliament after the 2012 legislative elections. However, most parliaments have between 10% and

16% of women members, even in the countries where quotas are provisioned.18

In addition, women

are increasingly taking the posts of ministers of health, education, and family or women affairs.

Niger and Senegal are here an exception, where the former had a woman heading the ministry of

foreign affairs and the latter a woman as prime minister.

2.4.5 Women in the troubled Sahel region are often the first to experience the devastation of

food and financial crises, armed conflict, and natural disaster. They are often victims of

discrimination, exceptional physical and human insecurity, chronic poverty and marginalization.

Immediately following the start of hostilities in northern Mali in April 201219

, women and girls were

subject to rape and sexual violence. During repeated droughts in Niger and elsewhere, women and

children are the majority of those displaced and suffer from a lack of access to water and food.

2.4.6 West Africa is also facing a youth bulge with about 40% of the population being under 15,

and nearly 70% under 30. The region has, however, not been able to tap into the opportunities this

bulge provides. Several youth are still idle, unemployed or under-employed. The problem is

compounded in such countries as Côte d’Ivoire, Sierra Leone or Liberia, where many unemployed

youth are also ex-combatants20

, thereby constituting a potential risk to the stability of the region. The

high incidence of poverty, unemployment and inequality in a region with such impressive growth

records is an indication that growth has not been sufficiently inclusive.

2.4.7 The health challenges can become additional threats to the development and national

security situations in the West Africa region. Although ECOWAS has made some progress in

promoting cooperation among its member countries in the health sector, the health problems in the

region remain significant. The regional health integration programs21

are yet to translate into

improved coordination, harmonized policies and regulations, regionally financed regional public

health goods, and ultimately improved healthcare systems. These health issues often transcend

15

Nevertheless, some of the region’s countries are among Africa’s best performers compared to their original condition.

Burkina Faso is distinguished by being among the most successful in the continent, leading the way in 16 out of 22

indicators. Ghana is also among the top performers continent-wide. 16

Four West African countries rank in the bottom ten on the Gender Equality Index. The literacy rate (MDG 2) is lower

than in other regions, with seven West African countries ranking in the bottom ten; maternal health (MDG 5) also shows

low results for the region (1/10 death during pregnancy in West Africa, compared to an average of 1/16 for Sub-Saharan

Africa). In turn, the picture is more positive with regards to women as economic agents (MDG 3), with more than 60% of

women in the labor force yet mainly in vulnerable economic sectors. . 17

Fatima Kyari Mohammed, "Women’s Economic Empowerment in the Sahel Region and the impact on Food Security",

background paper, April 2013. http://trvw.in/1iK9BoI 18

Quotas of seats for women: 30% each in Côte d’Ivoire, Burkina Faso, and Guinea; 30% in Mali (within political

parties); equal representation in Togo and Cabo-Verde, and Senegal. http://www.quotaproject.org/fr/ 19

In April 2012, rebels seeking more autonomy for the northern part of Mali took control of the region. The President

was deposed in a coup over his handling of the crisis; In parallel, infighting within rebels who had overtaken the north

left hardline Islamists in control of the region. In January-February 2013, foreign intervention allowed the government to

regain control of the North. A peace agreement was signed on 18 June 2013, but occasional hostilities still occur. 20

Youth Unemployment and Stability http://blog.fundforpeace.org/blog-20131108-youthunemployment 21

ECOWAS created the West African Health Organization in 1987 with the objective to promote and protect the “health

of the peoples in the sub-region through the harmonization of the policies of the Member States, pooling of resources and

encourage a collective and strategic combat against the health problems of the sub-region”.

7

borders, as demonstrated by the recent outbreak of Ebola, and can turn into additional factors of

vulnerability for the politically unstable and economically disadvantaged West African countries.

2.4.8 The recent drought in the Sahel has also shown the vulnerability of the region to climate

change; Communities remain highly exposed to watershed erosion, loss of woodlands of soil

productivity, reduced crop yields, and the spread of diseases such as malaria. Furthermore, the effect

of climate change on increasing the diversification of agricultural conditions across the region,

coupled with the weakness of crop storage facilities could also affect food security22

. While the

percentage of the population that is undernourished is on decline in West Africa, wide differences

remain between countries23

.

2.4.9 A strategic approach to prevent, mitigate risks and ensure adaptation to evolving climate

conditions is required. Including the gender aspect among drivers of conflict, fragility, or resilience

can lead to a better assessment and better development of avenues for resilience.

2.5 Regional Infrastructure

2.5.1 Over the past decades, the West African transport network has widely expanded,

particularly along the primary road networks. Higher traffic matches areas of high population and

economic activity (such as western Senegal, parts of Nigeria and the Gulf of Guinea)24

. Nevertheless,

the length of paved roads does not necessarily speak for their quality and maintenance. The flagship

project in West African transport is the Trans-West African Highway, which will link 11 ECOWAS

countries, from Nigeria to Senegal, with additional feeder roads connecting Mali and Burkina Faso.

The network also extends further west past Senegal to reach Nouakchott in Mauritania. Of a total of

4010 km, 3,260 km are paved. Yet large swathes of the road, most notably those in Guinea, Liberia

and Sierra Leone, remain to be paved. While air transport coverage has increased, thanks to the

emergence of regional champions like Asky Airlines, air traffic integration is still limited , partly due

to the slow implementation of the Yamoussoukro decision, which liberalized air transport25

. Over

25% of travel routes are still serviced by a single airline and up to 70% of air transport served by a

monopoly carrier26

. Railways integration has been slow to come by, as West Africa’s railways are

largely perpendicular to the coast, and disconnected from one another27

. Plans are underway to

establish a sub-regional railway network, namely through the Cotonou-Niamey-Ouagadougou-

Abidjan Railway. A major obstacle for railway integration in West Africa is the existence of

different gauges between countries, which simply makes it impossible to carry goods and passengers

across borders. In fact, two countries in the region, namely Guinea and Liberia, have two different

gauges each28

.

2.5.2 Crises and infighting in some countries in the region have destroyed parts of their energy

infrastructure; in others, the lack of investment has led to its deterioration and obsolescence. As a

result, electricity production remains very expensive for many countries and access to electricity is

among the lowest in the world29

. While at present West Africa has a very low per capita electricity

use, this situation is likely to change rapidly in the future. It is projected that demand may increase

22

Agricultural Growth in West Africa (AGWA): Market and Policy Drivers. Edited by Frank Hollinger (FAO) John M.

Staatz (Michigan State University) February 2014 23

FAO’s 2012 State of Food Insecurity Report: Ghana, Nigeria, Mali and Niger have been making strong progress,

whereas Liberia, The Gambia, Senegal, and Sierra Leone have been lagging behind. In Côte d’Ivoire, The Gambia,

Guinea, Liberia, Senegal, Sierra Leone, and Togo, the absolute number of undernourished people has increased. 24

OCDE, Rapport Afrique de l'Ouest 2007-2008. Paris: OCDE. December 2008.

www.oecd.org/fr/csao/publications/42358554.pdf 25

Charles Schlumberger, "Open Skies for Africa - Implementing the Yamoussoukro Decision". Washington DC: The

World Bank, 2010. P. 76 26

Lee Crawfurd, "What ails African Carriers?". The East African, 25 January 2014, 27

OCDE, Rapport Afrique de l'Ouest 2007-2008, idem 28

Joel Macharia, « The legendary lunatic express is barely chugging along”, in “Africa in Fact”, issue 16, Oct. 2013. 29

In 2009-10, it was estimated that ~175 million people in ECOWAS region had no access to electricity, particularly in

the rural area (80% of the people without access). While six countries already have a significant national electricity

access rate greater than 30% (Cabo Verde, Ghana , Nigeria, Côte d’Ivoire and Senegal), in all remaining ECOWAS

countries only 18% of the population in average had access to electricity with most of them in urban areas (83%).

8

ten-fold in the coming two decades as the economic activity increases. Energy interconnectivity is

key to address such demand at regional level. While many interventions are planned at country level,

the West African Power Pool (WAPP), now a specialized institution within ECOWAS, is expected to

play a major role in creating a cross-border energy market to harness the competitiveness for all

West Africans, such as through the Bank supported "Côte d’Ivoire - Liberia - Sierra Leone - Guinea

(CLSG) Interconnection Project”. The project will bring a high voltage transnational transmission of

1357 km, with a capacity of 225 kV, linking all four countries. The region also features a large

potential for renewable energy30

. Research suggests that that up to 54% of Western African power

supply could be based on renewables by 2030.

2.5.3 In terms of ICT, West Africa has traditionally suffered from low access to high-speed

telecommunications and broadband. Prices have often been artificially maintained high due to

monopolistic positions, and users have suffered from high prices coupled with low connection

quality and speed. Two large projects were launched in 2012 to offset this major weakness: (i) the

West Africa Cable System (WACS), a 16,000 km fiber optic cable system running across the

Western coast of the continent, from South Africa to the United Kingdom, and (ii) the African Coast

to Europe (ACE) cable connecting 20 countries from France to West Africa, and representing the

first submarine cable to service several West African countries. It has a capacity of 5.12 Tbit/s, a

significant jump of capacity and quality of service offered to the region’s users.

2.5.4 The performance of West African countries in trade, transit and transport facilitation, as

measured by key facilitation indices, is mixed. The ECOWAS region is at par with the continent in

terms of cost to export and import; number of documents to export and import as well as time to

export and import. 31

However, averages masked large gaps in performances between the best

performing ECOWAS countries and the worst performing, as measured by the Logistics

Performance Index (Table 3).

Table 3: Logistics Performance Index scores, on a scale from 1 (low) to 5 (high), for the years

2010-2012-2014 (Source: The World Bank)

Nig

eria

Côte

d'I

voir

e

Burk

ina

Fas

o

Ghan

a

Sen

egal

Lib

eria

Ben

in

Mal

i

Guin

ea

Guin

ea

Bis

sau

Nig

er

Togo

Gam

bia

Sie

rra

Leo

ne

Cab

o

Ver

de

2014 2.81 2.76 2.64 2.63 2.62 2.62 2.56 2.50 2.46 2.43 2.39 2.32 2.25 -- --

2012 2.45 2.73 2.32 2.51 2.49 2.45 2.85 -- 2.48 2.60 2.69 2.58 2.46 2.08 --

2010 2.59 2.53 2.23 2.47 2.86 2.38 2.79 2.27 2.60 2.10 2.54 2.60 2.49 1.97 --

2.6 Regional Integration Strategy Framework Developments

2.6.1 The WA Regional Integration Strategy Framework remains predominantly shaped by the

ECOWAS and its Vision 2020, which aims to create an “ECOWAS of the People,” underpinned by

the establishment of a seamless regional market with economies of scale in economic activities and

free movement of persons, goods and services. The Vision 2020 focuses on five themes: regional

resource endowment; peace and security; governance; economic and monetary integration; and

private sector. Since 2011, the progress in implementing the Vision 2020 has been mixed.

2.6.2 Since 2011, one of the most remarkable landmarks in the development of economic co-

operation and regional integration in the ECOWAS was the adoption in October 2013 of the

30

Some example include: (i) Small hydro potential in the southern part of the region (ii) solar resources in the desert

areas (in Mali and Niger and in the North-Eastern part of Nigeria) with a potential of 1,700 kWh/installed (iii) Wind

potential is concentrated in the costal zones (Cabo Verde, Senegal, The Gambia, and possibly Ghana, Mali and Nigeria) 31

The composition of national exports to the region differs greatly. Nigeria’s exports are largely dominated by crude oil,

Côte d’Ivoire and Senegal by refined petroleum products, Ghana by manufactured wood, plastic and textile products.

Togo has the highest share of regional trade; it exports construction products (steel and cement), packaging material, and

some food products. Others, like Mali, Niger, and Burkina Faso, primarily export agricultural products..

9

Common External Tariff (CET), the principal attribute of Customs Union32

, which will become

operational on January 1, 2015. The CET will lead to a reduction of the most-favored nation import

tariff from 12.0% to 11.5%. This is a major achievement given the earlier controversies and

disagreements since the commencement of negotiations in 2004. Reduction of the MFN import tariff

should contribute to relaxing trade restrictions, harmonizing and strengthening the common market

of ECOWAS member states, a necessary condition for a customs union and common trade policy.

Steps towards deepening regional integration also included the creation of an ECOWAS Community

Integration Levy in 2013, which is to replace the existing community levy regimes, namely the

ECOWAS community levy and its WEAMU counterpart and the Community Solidarity Levy, with

the aim to ensure compliance with international WTO requirements.

2.6.3 The ongoing negotiations on ECOWAS–EU Economic Partnership Agreement (EPA)

represent a potential game changer in the trade and regional integration agenda. The EPA

would entail greater preferential access to European markets, but also require the opening of West

Africa’s market, albeit through a longer time transition time line of 20 years. There are already

signals from some concerned members over the impact of the EPA on their economies. West African

leaders, arising from their summit on 25 March 2014, called for more internal consultations in order

to further iron out divergences. Following this development, it thus points to the kind of challenges

EPA might pose to the cohesion of the region and indeed to the implementation of the CET, namely

on the need to reduce cost of doing business and address barriers to intra-regional trade as

prerequisite for a successful EPA which can build on and not hamper intra-regional integration. This

thus presents both challenges and opportunities for the ECOWAS going forward.

2.6.4 Progress has been made towards the establishment of the ECOWAS Monetary Union, yet

the deadline of 2020 appears unrealistic due to limited convergence to common criteria, with

the partial exception of WAEMU33

(see Annex 1). Efforts are underway to integrate the Nigerian

Stock Exchange, the Ghana Stock Exchange, the Sierra Leone Stock Exchange, with the Bourse

régionale de valeurs mobilières in Abidjan, including mutual cross-listing and trading of stocks. The

integration process for capital markets initiated in 2010 in the ECOWAS effectively took off with the

inauguration of the West African Capital Markets Integration Council, in Abuja in early 2013.

2.6.5 A number of sub-regional and specialized RECs are also emerging as key players for

regional integration, most notably agencies such as WAPP and smaller groupings like the MRU.

2.6.6 In recent years private sector in the region has also emerged as a new driver of regional

integration, with the affirming of new players operating across countries in the areas of agro-

industry, banking, transport, and ICT. In 2012 a new initiative called “Douala process” was

established to create a network of business organizations across French, Portuguese, and Spanish-

speaking Africa to improve business organizations’ governance and develop networks of alliances

for them to seek synergies. A private sector–led regional sea-link project is expected to contribute to

deeper trade integration by sea.

2.7 Aid Coordination and Harmonization Mechanisms

2.7.1 A number of major donors have been active in the regional integration process through

financing regional and multinational operations. These include the African Development Bank,

the World Bank, the European Union, the United Nations System, and many bilateral donors. From

32

The negotiations were concluded in Praia, Cabo Verde in March 2013, while the ECOWAS Heads of State finally

adopted it in their Summit in Dakar, Senegal in October 2013. The CET will however come into a full scale operation

from 15 January 2015. 33

None of the six Member States satisfied all the four WAMZ primary criteria in 2012, same as in 2011. The Gambia,

Ghana, Liberia and Nigeria satisfied three criteria each, while Guinea and Sierra Leone were in compliance with two

each. The most challenging criterion was fiscal deficit, followed by inflation. Concerns about the lack of preparedness for

the planned launch of the regional currency in 2015, a precursor for the establishment of the ECOWAS Monetary Union,

were also raised by ECOWAS and Heads of State at the recent WAMZ meeting in July 2013.

10

an aid coordination standpoint, a number of institutional actors in the region have been active in the

coordination of donors’ aid for regional integration.

2.7.2 While numerous aid coordination mechanisms exist at country level, there is no formal

aid coordination and harmonization framework for regional integration. Donor assistance is

generally scattered, particularly for capacity building efforts. Lack of coordination and

harmonization of interventions is clear not only at strategy and planning level, but during the

implementation, creating a multitude of procedures, supervision missions and incoherence in the

programming and functioning of activities. As indicated in Annex 4a, the track record of co-

financing regional integration projects is limited.

2.7.3 As a follow up to the various waves of droughts in the Sahel and the recent conflict in

Mali, efforts have been deepened to create a closer coordination in the Sahel region through the

establishment of a UN-led coordination platform on the Sahel gathering Sahelian countries,

Multilateral Development Banks, bilateral agencies and RECs. Yet this initiative is still at its infancy

and lack of common strategic planning is evidenced by the “proliferation” of Sahel strategies. New

more focused initiatives have emerged to strengthen regional and coordinated approaches to

resilience such as AGIR, P2RS and Lake Chad.

2.7.4 The Bank is also supporting new platforms for coordination and co-financing, notably

under the umbrella of the Mano-River Initiative, a new framework to facilitate financing of

regional backbones infrastructure for the four members of the MRU countries. The Bank is also

taking a key role in the Sahel Initiative and the recently established ECOWAS–led thematic groups,

including the Bank chaired group on infrastructure.

2.7.5 On and beyond the Mano River, co-financing with the European Union represents a

major opportunity, as around 1,2 billion Euros is planned to be rolled out for regional projects for

West Africa alone, as part of the EU’s Regional Indicative Program (2014-2020) currently under

preparation, with concrete opportunities for the Bank to co-finance some of its interventions and take

advantage of their “blending” instruments.

2.8 Challenges and Opportunities

2.8.1 The RISP 2011- 2015 identified various challenges for regional integration, such as poor

cross-border trade and infrastructure, as well as the weaknesses of human capacity and national

and regional institutions, fragmentation of the region’s market, multiplicity of integration

architecture and insufficient involvement of private sector and civil society in integration effort,

while it highlighted the political will

and the regional resource wealth as

the key opportunities. These still

remain today and undoubtedly, the

lack of adequate infrastructure

represents one of the most important

factors constraining African

economies’ move to a high growth

trajectory. However, they have been

exacerbated by new emerging

priorities, including governance and

increased fragility.

2.8.2 The increased exposure to

fragile situations in the region

indeed represents a major

challenge for maintaining peace and

security as well as state building, and

as a result has the potential to hinder

the deepening of regional integration.

Box 2: Integration through private sector, the case of

ECOBANK

Togo-headquartered "Pan African Bank" is a prime example

of the African private sector serving the mission of

strengthening ties and deepening integration between

countries – and of the difficulties of this endeavor. Established

in 1985 as a private effort led by the Federation of West

African Chambers of Commerce and Industry, Ecobank’s

largest shareholder upon launch was the ECOWAS Fund for

Cooperation, Compensation and Development. The bank was

granted the status of an international organization by the

Government of Togo, and considered a non-resident financial

institution. The bank boasts banking operations in 35 African

countries; yet Nigeria alone accounts for 70% of its customer

base. Ecobank posted a 16% growth in net revenue in FY13

and first quarter 2014, with $2 billion and $525 million

respectively. In West Africa, the bank has seen a 20.8%

increase in Net Interest Income in 2013 and a 15% growth in

net profits regionally, despite a 36% decline in Nigeria.

11

Further to the Sahel crisis, an additional country (Mali) has joined the classification of fragile states

and new pockets of fragility are emerging in the aftermath of regional security threats such as is the

case of North-Eastern Nigeria, spreading beyond its borders.

2.8.3 Governance challenges in some countries in the region continue to have a negative impact

on trade and investments. With only four African countries scoring above 50 (out of 100) on

Transparency International’s Corruption Perception Index, West Africa remains highly perceived as

a region that suffers from corruption and anti-transparent politics34

. This perception deeply affects

domestic and foreign private sector investments, resulting in a lack of confidence in investing in

national and cross-border investments.

2.8.4 Poor logistics and trade facilitation affecting the region greatly limit the benefits from

new infrastructure developments. Illegal checkpoints, long and non-harmonized customs

procedures, smuggling and corruption are important obstacles to the free movement of goods and

people. Long port dwell time, typically 12 to 20 days, are compounded for traffic to and from

landlocked countries. Improving trade facilitation in ECOWAS is vital to boosting the region’s trade

performance, both with regards to intra-regional trade as well as exports globally35

.

2.8.5 With six out of 10 African fastest growing economies in 2013 being West African36

,

mobilizing private sector around regional integration is a major opportunity. New waves of

FDIs and the emergence of a middle class in the region are leading to the emergence of a vibrant

private sector operating across countries, which can continue to serve as a natural catalyst for closer

collaboration and integration, towards the development of regional and global value chains.

2.8.6 Building regional value chains in West Africa, in areas such as agro processing, would

help support the efforts in better linking regional markets. For example, while the region is the

world’s largest producer of cocoa beans, 90 per cent of the crop is exported raw or roasted, packaged

and sent to the United States or Europe. This denies Africa of the most profitable part of the

confectionary market value chain – the processing of the cocoa into chocolate. The first steps in

undoing this disadvantage are to promote policies within the broader development framework,

attracting FDI, building productive capacities in local firms, and encouraging manufacturing.37

2.8.7 The increased stabilization of the region and opportunity of strengthening the regional

responses to common political and security threats in fragile situations can also offer a turning

point towards regional cooperation. The more recent positive signs of stabilization in affected

places such as in Mali and political transition in Côte d’Ivoire can be considered as a real opportunity

to enhanced trade in such pivotal countries. The regional dimension of fragility makes the case for

regional approaches and closer collaboration among States more compelling.

III. RISP IMPLEMENTATION: RESULTS ACHIEVED AT MID-TERM

3.1 RISP Objectives and Expected Results

34

According to the 2013 Transparency International Corruption Perception Index, one West African country scores

higher than 50, Cabo Verde (58 points) ranking 41st , followed by Ghana (46 points) at the 63

rd position and Senegal (41

points) at the 77Th

position. The bottom three West African countries are Nigeria (25 points) ranking 144th

, Guinea (24

points) at the 150th

position and Guinea Bissau, (19 points) for the 163rd

position. 35

The WAEMU has drafted plans for a regional transit reform to reduce sub-regional logistic costs by 25%, establish

interconnection of the customs IT systems, reduce time required for transit goods from ports to hinterland destinations by

50%, increase capacity in electronic trading and regulation, and remove obstacles from value-added logistics. The

preparatory phase of this sub-regional project was pre-approved for funding by the Africa Trade Fund. 36

The six West African fastest growing economies are: Burkina Faso (8% GDP growth), Niger (11.2%), Ghana (8%),

Sierra Leone (18.3%), Liberia (8%), and Côte d’Ivoire (8%). 37

Côte d’Ivoire provided incentives to major grinders including tax breaks on foreign investment, to locate processing

facilities in the country and has been able to attract global players. This has led to a broader network of input sourcing

and promises to strengthen linkages with the biggest players in the market. AfDB Annual Development Report 2012

12

3.1.1 The WA-RISP rests on two pillars: (i) linking regional markets and, (ii) building capacity

for effective implementation of the regional integration agenda. Within its two pillars, the WA-

RISP identified key investments, particularly in the area of energy and transport.

3.1.2 The WA-RISP has provisioned for 13 regional operations and five economic and sector

works to support the implementation of this strategy (detailed list in Annex 2). Out of the 13

projects, four were approved between 2011 and 2013, four are in process or under review, one is

postponed until 2016 and four are on stand-by due to an overoptimistic availability of ADF resources

(country and regional operations envelopes) when identifying the RISP portfolio. All ESWs have

been completed. Out of the 13 operations, five are in transport infrastructure, six in energy

infrastructure and two in capacity building. In addition to these 13 identified projects, twelve

regional operations were included in the pipeline for 2013 to 2015 (see Annex 3 for more details).

3.1.3 The global review of the WA-RISP implementation status is satisfactory, notwithstanding

the various difficulties that the projects are experiencing. The key challenge for the remaining

period will be to mobilize enough resources to deliver the four operations on stand-by. The

effectiveness and expected results of the RISP were monitored on the basis of the RISP’s Results-

Based Framework (RBF). The indicative results matrix in Annex 4 summarizes the outputs and

outcomes targeted in this RISP and their status at the mid-term.

3.1.4 Since its inception, alignment of CSPs to the WA-RISP has been fairly strong, with 14

newly approved strategies and one update, all displaying consistency with the two pillars of the

RISP. Country planning has also included an increasingly sizable share of projects with regional

dimensions, notably in Benin, Ghana, Nigeria and Senegal (see Annex 12).

3.2. Status of RISP Outputs and Outcomes at Mid-term

The analysis of the mid-term outputs and outcomes status compared with the expected

indicators indicated in the RBF of the WA-RISPs shows limited progress further to the delays in

approval and given that most results are likely to accelerate towards the end of the strategy period

and fully materialize beyond 2015. Nevertheless some tangible achievements have already occurred

at mid-term, namely through the first two operations approved in 2011 which are under an advanced

stage of implementation. The Rehabilitation of the Lomé – Cotonou Road and Transport Facilitation

on the Abidjan-Lagos Corridor Project has reached a completion rate of 40% as of March 2014. The

detailed indicators for regional integration will be calculated upon completion of the project

(scheduled for 2016). The Construction of the Trans-Gambia Bridge and Transport Facilitation on

the Trans-Gambian Corridor Project encountered delays in signature and only became effective for

first disbursement in March 2013. Construction works are scheduled to start mid-2014 after due

procurement process. Details of the expected results are in Annex 11.

3.3 Bank Group Regional Portfolio Performance Review

3.3.1 The Regional Portfolio Performance Review was undertaken by Bank field offices at three

different locations: in Ouagadougou with WAEMU, in Dakar with OMVS and OMVG, and in Abuja

with ECOWAS. Results of these reviews were then discussed during the wider MTR of the WA-

RISP which took place in Abuja on March 17-18 (see Annex 9). The review assessed the strengths

and weaknesses of the portfolio, and suggested proposals to improve its performance.

3.3.2 As of December 1st, 2013, the Bank's

active regional operations portfolio in West

Africa included 43 operations, including six

projects identified under the two strategic

pillars of the current RISP, for a global

amount of UA 667 million and an average

disbursement rate of 31%. The portfolio,

depicted in Figure 2, is dominated by the

infrastructure sector, namely energy and

transport projects, which accounts for 26

Energy (14 projects)

Transport (12 projects)

Agriculture (2)

Finance (6)

Social (2 projects)

Others (7 projects)

Figure 2: Breakdown of Regional Portfolio by value of

Sector

13

interventions for a total of UA 513 million or 77% of commitments. This predominance is due to the

priority assigned to these sectors in the Bank’s support for regional integration and, consequently, the

considerable resources mobilized for electrical interconnections and road corridor projects. The

regional portfolio is rated 2.07 / 3.

3.3.3 The Bank regional portfolio in West Africa also comprises six active private sector

operations amounting to UA 100 million, primarily in the finance sector and consisting of Lines of

Credits and Equity Participation in Regional Banks, as well as a few operations in the area of

monetary and banking reforms. By investing in funds, the Bank not only developed adequate

management capacity in the region, but also deployed relevant equity in companies which contribute

to strengthening entrepreneurship and governance. It also provides the growth capital required for

SMEs to potentially become the regional integration players of coming years.

3.3.4 The overall portfolio performance of the West Africa Region is relatively weak with an

average disbursement rate of 31% and presents a number of challenges, as described below.

3.3.4.1 Projects at risk: The total West African

regional operations portfolio includes two

problematic projects (PP), as well as 5 potentially

problematic projects (PPP); hence a total of seven

projects at risk (or 16% of the regional active

portfolio, in line with the Bank average).

3.3.4.2 Aging projects: the West African regional

portfolio comprises two aging projects, or 5% of

its operations, compared to a Bank’s overall

average of 12% for regional operations. However

an analysis of projects directly managed by the

RECs indicates that there is a large risk that, in the

coming 2 to 3 years, the regional portfolio will

include 5 to 6 additional aging projects, as the portfolio includes 7 operations with an average

disbursement rate of 50% and age of 6.4 years.

3.3.4.3 Signature delays: The regional portfolio of the West Africa region is experiencing

significant signature delays; this contributes to significant delays in projects startup, which in turn

affect the disbursement ratio. In addition, this situation exposes the said operations to cancellation, as

they fall into the criteria of operations being approved but unsigned for 180 days or more. Out of the

current portfolio of 43 projects, 15 have experienced signature delays. Lack of closer and proper

follow up from both the Bank and the RECs on conditions of signature and effectiveness and poor

coordination between the two entities are the primary reasons affecting projects start up and

disbursement. The new practice at the Bank is to propose loan agreements at national level to reduce

signature delays.

3.3.5 Regional operations directly managed by the RECs: various regional operations are directly

implemented by the ECOWAS and WAEMU

Commissions (four and three projects respectively)

as well as by OMVG and OMVS, to ensure an

adequate solution to specific challenges or

difficulties of these projects. With regard to

ECOWAS, the portfolio’s average age is 7.15 years

and the disbursement rate is 56%; for the WAEMU

portfolio, average age is 5.5 years and disbursement

rate 45%, representing a satisfactory disbursement

rate but similar aging average compared to the

overall regional average. Annex 6 provides the

overview of the regional operations managed by

14

WAEMU and ECOWAS.

3.3.5.1 These relatively weak results are essentially due to: (i) low level of quality at entry (low

maturity level of projects, institutional delays and long procedures in setting-up management teams

monitoring tools); (ii) Slow implementation (lack of follow-up from the Bank, weak monitoring

mechanism at the Bank and at the Commissions).

3.3.5.2 Portfolio performance and implementation challenges: implementation of the WA-RISP

generated many achievements in hard infrastructure, especially in road and energy projects, and in

strengthening collaboration between Member States of the sub-region.

3.3.5.3 However, impact from these investments remains limited due to obstacles encountered in

implementing trade facilitation and free movement of people, and procedures harmonization.

Construction and operationalization of checkpoints along corridors remain to be finalized.

3.3.5.4 Generally, the major challenges in implementing regional operations in West Africa

are: (i) lack of capacities within the RECs; (ii) low monitoring of activities by the regional structures

in charge of these projects, or lack of such structures; (iii) weak support from the Bank to these

structures; and (iv) lack of communication and follow-up mechanism for the regional portfolio.

Recommendations have been formulated as an Improvement Plan to respond to these difficulties.

3.3.5.5 Non-lending work, namely the ESW, also enabled the Bank to strengthen the dialogue

on regional issues and raised the awareness on the potential for regional integration. In the case of

Senegal, Nigeria and Cabo Verde, the studies triggered discussions on the respective role of such

countries in terms of regional integration. All planned ESW have been completed and in some cases

refocused in view of the changing political landscape.

3.3.6 Performance of the Bank, RECs, and RMCs: The portfolio review has unveiled a number of

key challenges that remain to be overcome, in order to improve the quality and performance of

multinational operations in West Africa; it also identified a number of lessons (see Section IV).

3.3.6.1 The main challenges to the performance of the Bank include (i) inadequate project

supervision, (ii) very strong centralization of decision taking at the temporary relocation agency in

Tunis (iii) insufficient proximity assistance to RECs, and (iv) inadequate supply of training on

Bank’s rules and procedures for project implementing organizations.

3.3.6.2 Performance of the RECs is often limited by (i) their low involvement in the project

planning phase, which translates into weak ownership, (ii) inexistent or inadequate follow-up

mechanism for projects, (iii) inadequate human resources allocated to projects, (iv) delays in the

selection of teams tasked with implementation, and (v) insufficient delegation of responsibilities.

3.3.6.3 Performance of RMCs has been found to suffer from (i) weak cross-country coordination in

project planning and implementation, (ii) insufficient consultations to determine appropriate project

launch conditions, and (iii) inadequate information sharing and dissemination.

3.4 Regional Portfolio Improvement Plan

3.4.1 The consultative approach on the portfolio review led to several proposals aimed at

improving the performance of regional operations in West Africa. These recommendations are

developed under an Improvement Plan (see Annex 7) and include the following measures:

(i) Strengthen decentralized responsibilities at field office level to ensure direct support to the

projects;

(ii) Deploy technical assistance (within the activities of capacity building to the RECs and to the

RMCs) on Bank’s procedures, such as procurement, financial management and audit;

(iii) Knowledge dissemination, sharing of good practices and experiences between the institutions;

(iv) Increase monitoring and evaluation mechanism through joint regular review of portfolio;

(v) Establish a taskforce of field office representatives and RECs to take appropriate actions on

cancellable projects.

15

IV. LESSONS LEARNED AND RECOMMENDATIONS AT MID-TERM

4.1 General Lessons

4.1.1 Despite the important developments and the progress achieved since the adoption of the

WA RISP, more needs to be done to strengthen market integration in West Africa and achieve

the objectives of the ECOWAS Vision 2020. Weaknesses in key infrastructure areas and in regional

and national capacities continue to represent key challenges for the regional integration process. In

addition, the RECs’ ability to implement regional operations remains constrained by insufficient

institutional capacity.

4.1.2 From the regional operations and programs implementation point of view, the analysis of

the WA-RISP MTR identifies key lessons that can be separated into four categories: (i) lessons

for the Bank; (ii) lessons for the RECs; (iii) lessons for RMCs; and (iv) lessons for the DPs.

4.2 Lessons and Recommendations for the Bank

4.2.1 To effectively strengthen the capacities of the RECs in the implementation of the regional

operations and improve the performance of the portfolio, the following lessons and recommendations

have been identified:

(i) Feasibility of the RISP indicative program of regional operations: The RISP was rather

optimistic on the Bank’s capacity to implement all regional operations. Some operations were

therefore dropped or put on stand-by for lack of funding. The MTR recommends a more realistic

planning of regional operations and a greater resource mobilization effort to leverage on

additional resources from partners. Good lessons were learned by the CLSG Interconnection

Power Project, where the Bank’s contribution of UA 130 million leveraged UA 331 million from

other partners.

(ii) The Bank should fully benefit from effective decentralization and delegation of

responsibilities to enhance timely and adequate responses to project identification,

implementation and monitoring. Various partners recommended the Bank should strengthen the

role of the field offices in the management of the regional operations and, if necessary, under the

supervision of a more experienced Task Manager;

(iii)The performance of multinational projects should be monitored and evaluated in a

different way compared to national operations, as responsibilities at the Bank are not always

well defined, in particular with regard to activities assigned to the RECs. Quality at entry and

quality at exit of regional projects need to be monitored more closely by ORWA and ORNG, in

order to reduce the risks of delays and eligibility for cancellation. For instance, assigning clear

responsibility for supervision to field staff, undertaking regular consultations between the field

offices and the implementing partners have proven effective tools of monitoring. Another crucial

activity to ensure timely implementation is the organization of procurement, financial

management, and audit workshops;

(iv) Trade, transit and transport facilitation are key: emerging evidence shows that multinational

operations in the area of infrastructure (hard side) need to be accompanied by trade and transport

facilitation and harmonization efforts (soft side) to fully deliver results. While visible

achievements have been made in hard infrastructure, operationalization of the soft side still

encounters difficulties, where the major challenge remains the application of agreed regulations

on facilitation, free movements, harmonization of customs practice, etc. The MTR recommends

mainstreaming the soft aspects across all new regional operations; 38

38 A few examples include: WAEMU Decision N°15/2005/CM/WAEMU on regional controls on roads, ECOWAS’

Inter-State Road Transit—Convention A/P.4/5/82 and Supplementary Convention A/SP.1/5/90, stipulating that the

transport of all transit goods should take place under the cover of an Inter State Road Transit Declaration booklet from

the point of departure in one country to the final destination in another country. ECOWAS Inter-State Road

Transportation—Convention A/P.2/5/82, setting out the conditions for inter-state road transport, and defines limits for

16

(v) Support to private sector and cross-country collaboration among companies should be

deepened to enable it to play a more prominent role in regional integration, trade facilitation,

knowledge transfer and financing;

(vi) Knowledge studies undertaken by the Bank are a valuable source of knowledge that should

be widely disseminated. The MTR recommends increasing knowledge generation and sharing,

including through the creation of a network of regional research centers and engagement with

RECs’ macroeconomic policy and research departments;

(vii) Institutional capacity of the RECs needs to be properly assessed: preparatory phases of

multinational projects often failed to adequately assess capabilities of regional institutions

(human resources, management arrangements and operating mechanisms). In the future, the Bank

should carry out a capacity assessment of the RECs and devise a set of measures to fill the

necessary capacity gaps. This is in line with the recent OPEV report on regional projects, which

stressed the importance of consultation and engagement with all stakeholders.

4.3 Lessons and Recommendations for the RECs

(i) RECs should create or strengthen existing structures within the RECs in charge of

implementing projects financed by the Bank. This includes assigning them more strategic and

coordination role, and reduced the operational responsibilities of these institutions

(ii) Regular portfolio review consultations with the Bank and other implementing partners are

needed to ensure coordinated, timely and effective monitoring of implementation status;

(iii)RECs should work more closely with their Member States to follow up on the

implementation of regional integration reforms, which are agreed at REC level but lack

operationalization at national level (e.g. those mentioned in footnote 39).

4.4 Lessons and Recommendations for RMCs

(i) There is a need to accelerate the above mentioned application of conventions and

regulations on regional integration agreed at REC level, which often fall short of being

implemented at national level, including rationalization of the number of specialized institutions

and dissemination of agreements, protocols and trade-related decisions to non-governmental

actors (civil society, private sector and trade unions);

(ii) Need for harmonization between the various norms, procedures and regulations at national

level. This should be supported by additional measures to spread knowledge about them to all

actors involved and to facilitate free movements of services across borders.

4.5 Lessons and Recommendations for the Development Partners

(i) Coordination among DPs needs to be strengthened, as weak coordination among various

stakeholders in the execution of multinational projects often creates huge disparities in the

implementation of the activities of these operations, which inevitably affect the achievement of

the expected outputs and results;

(ii) Harmonization of procedures and strategies of funding agencies should be encouraged.

Across the variety of actors involved in regional operations. Greater coordinated planning and

harmonization would ensure timely delivery and achieve successful project implementation, as

well as reduce drudgery and transaction costs.

V. BANK GROUP STRATEGY FOR THE REMAINING WA-RISP PERIOD

5.1 Rationale and Pillars

Analysis at mid-term supports that the challenges and two strategic pillars identified in the

WA-RISP (2011-2015) remain broadly relevant for the remaining period yet there is a need to

truck dimensions and axle loads. ECOWAS Brown Card insurance scheme—Convention A/P.1/5/82 facilitating the free

movement of persons and goods through a common insurance cover.

17

refocus Pillar I into Regional Infrastructure Development to ensure alignment to the TYS39

and take

into account the new political landscape and new fragility dimensions in the region.

5.2 Criteria for Defining the Strategy for the Remaining WA-RISP Period

The Bank Strategy for the remaining period proposes a new filtering process to be adopted

in view of the changes occurring in the region:

(i) Ownership – At the regional institutions’ level, the Bank takes stock of the progress

achieved by the RECs, which has shown moderate results within the regional integration

agenda. In particular, the Bank advocates for enhanced ownership of regional integration

agreements by countries and by the RECs and supports strengthened implementation of the

Vision 2020. The Indicative Lending Program is fully aligned with PIDA and the 2020 plan.

(ii) Alignment with TYS - At the strategic level, all new initiatives should be more closely

aligned with the TYS operational priorities and areas of special emphasis. The MTR

proposes supporting regional integration mainly through a more focused regional infrastructure

pipeline, while increasing its support to “soft” aspects, in line with the orientations from the new

Bank’s Regional Integration Strategy under preparation. The Bank will also pay stronger

attention to TYS’s areas of special interest (see para 5.3.4);

(iii)Fragility – Building on the new and changing political landscape (para 2.2), priority will

also be given to transformative activities which could support to areas of persistent and

renewed fragility, namely through initiatives with high potential to contribute to regional

stability, such as the Sahel and the MRU;

(iv) Partnership and leveraging – Taking stock of the notable economic developments (para 2.3)

the Bank will be encouraged to support catalytic interventions, which offer opportunities

for new partnerships with the private sector and other development partners to boost regional

infrastructure and expand intra-regional trade markets.

5.3. Key Deliverables and Targets

5.3.1 The RISP Indicative Pipeline has been update revised in view of the above criteria and

lessons learnt. The list of old and new operations are found in Annexes 2 and 3.

5.3.2 Pillar I: Regional Infrastructure Development

5.3.2.1 Under Pillar I, the Bank will put a stronger focus on regional infrastructure

development, namely on energy and transport. With a view towards taking into account

emerging issues linked to fragility in the Sahel, emphasis will also be put on agricultural

infrastructure. Bank investments in these sectors will enhance trade and transport through

efficiency gains, leading to decreasing transport cost and time, and increasing access to more

affordable and reliable electricity. This includes a new multi-donor initiative for the MRU countries

aimed at financing regional infrastructure backbones, where the Bank will finance various transport

missing links. A number of new catalytic interventions of rehabilitation of cross-border roads in Côte

d’Ivoire-Mali and the construction of the bridge on the Rosso (Senegal-Mauritania) will also be

financed. The Bank will also support a regional air transport project and a new program to strengthen

resilience to food insecurity (para. 5.3.4.4).

5.3.2.2 Finally, the Bank will deepen its work on trade, transit and transport facilitation which

will become an integral part of all new transport operations, and support a standalone

WEAMU’s Trade Facilitation program.40

Annex 3 provides the full list of newly identified regional

operations for the remaining period.

5.3.3 Pillar II: Capacity Building for Effective Implementation of the Regional Integration

Agenda

39

The TYS’s priority areas are: infrastructure, regional integration, private sector development, governance and

accountability, and skills and technology. The TYS’s areas of special focus: agriculture and food security, fragility and

gender. 40

Support will also be provided for the formation of Corridor Management Organizations (CMO), which would be

established by the states for particular corridors, but funded and driven by the private sector and stakeholders.

18

5.3.3.1 Within the WA-RISP MTR framework, the AfDB will continue to provide capacity

development to RMCs and the RECs, in order to offset the lingering weaknesses of human

capacity of national and regional institutions, market fragmentation, and complex integration

infrastructure. In this regard, attention will be paid to building institutional capacity for

implementation of a common market occasioned by the conclusion of the CET, a renewed migration

policy and the private sector.

5.3.3.2 The Bank will refocus its capacity building efforts towards cross border trade, namely

through the Africa Trade Fund, which will support a number of programs, like the Trade

Transparency Initiative, Customs Reform and modernization programs, as well as through the

monitoring and evaluation of trends that can inform improved border and transit management.

5.3.3.3, The Bank will also continue building stronger statistical capacity of the RECs and the

wider stakeholders to nourish a wider debate on regional integration. Under the ongoing statistical

capacity building of the RISP, the Bank will accelerate the implementation of its support to (i) the

ECOWAS Commission, (ii) WEAMU, (iii) MRU, (iv) AFRISTAT, (v) two Statistical Training

Centers (ENSEA in Côte d’Ivoire and ENEA in Senegal) and (vi) WAMI.

5.3.3.4 Under this pillar, the Bank will also establish a new knowledge platform gathering

regional think tanks and research center. The Bank will aim at significantly increasing the

repository of knowledge on regional integration, build stronger capacity of local and regional

institutions to play a key role in shaping dialogue at country level, as well as generate a space for

bottom-up dialogue. It is expected that this platform will enhance the repository of knowledge on

regional integration and contribute to the broader ESW agenda (see para 5.3.5).

5.3.3.5 The Bank will also support the creation of a network of SME supporting agencies in the

WAEMU region through the initiative “Making Finance Work for Africa”, further to the preparatory

work and foundations for such a network in 201241

.

5.3.4 Areas of Special Emphasis

5.3.4.1 The MTR suggested greater efforts are deployed to address the various areas of special

emphasis defined by the TYS, namely Gender, Fragility and Agriculture and Food Security.

5.3.4.2 Fragility. In line with its new approach to addressing fragility and building resilience, the

Bank will strengthen its programming by applying a strong “fragility lens” to detect, respond and

prevent fragility through a political economy analysis in the design of policy documents and through

project interventions that can lead to peace- and state-building. The Bank’s focus will be to build

resilience not only at the national level but also at the regional level, by working through and with

regional organizations; assisting governments to address fragility, addressing capacity gaps in fragile

situations; and integrating a gender perspective in all programs to build resilience.

5.3.4.3 Gender. The MTR proposes that the Bank deepen its regional integration activities towards

gender inclusive interventions, including through conducting country gender profiles for the whole

sub-region (three completed in 2011 and two to be finalized in 201442

), as well as undertaking a

regional gender assessment for the Sahel. These studies will inform regional and country-level

strategies and operations, as well as build a baseline to develop targeted indicators to measure

specific impacts of its regional projects on girls and women for the future RISP and projects. A

stronger emphasis will be put on having inclusive processes, where women are equally represented in

the decision-making structures and the political dialogue. Regional operations teams will be

41

Declaration of Intent for the Establishment of the Regional Formal Network of SME Supporting Agencies in the

WAEMU Region, "The Dakar Declaration”, March 30th, 2012 42

Mali (2011), The Gambia (2011), Sierra Leone (2011), Liberia (expected 2014), Côte d’Ivoire (expected 2014) and

Nigeria (expected 2014).

19

encouraged to include a Gender Specialist. Capacity building activities will include components

targeted at women’s specific needs43

.

5.3.4.4 Agriculture and food security. The Bank will also pay closer attention to agriculture and

food security, namely through a new agriculture infrastructure program to strengthen resilience to

food insecurity in the Sahel. Through this program and various country interventions, the Bank will

try to reverse the agricultural and food trade balances for West Africa, which have remained negative

over the past decade44

.

5.3.5 Economic and Sector Work

The Bank will give greater focus on creating knowledge for the remaining period. A

dedicated knowledge management strategy will be developed to encourage the Bank to “think

regionally” and get a better understanding of, monitor and provide policy advice on common

challenges affecting the region, including through a number of new policy series and quarterly

publications. The Bank will also deliver a number of flagship publications and detailed studies, such

as (i) fragility assessments in the Sahel region and in the MRU countries; (ii) an economic analysis of

the potential for growth for the MRU; (iii) studies on Trade facilitation and investment; (iv) a gender

study on Sahel and (iv) a number of studies addressing and assessing regional projects, including the

planned railway network and the Abidjan-Lagos corridor. These studies, mostly funded by IPPF and

Trust Funds, will support dialogue on regional integration and also prepare the ground for the next

RISP. The full list of new planned ESW can be found in Annex 3.

5.4 Institutional Arrangements and Resources

5.4.1 The RISP recommends mainstreaming the regional integration agenda across all

interventions. Greater emphasis and preference should be assigned to country operations which have

the potential to contribute to regional agenda. While national utilities and adequately mandated sub-

regional institutions are identified as the main implementing agents, ECOWAS will play a greater

coordination role for regional programs through the establishment of a framework agreement

between AfDB and ECOWAS.

5.4.2 At the Bank’s level, ORWA, ORNG and ONRI will jointly manage and coordinate

implementation of the RISP, in collaboration with sector departments. Gaps in RISP

implementation modalities were identified namely in terms of supervision. To address this gap, the

MTR recommends strengthening the role of key field offices (Nigeria, Burkina Faso and Senegal) in

overseeing the implementation of regional operations.

5.4.3 Financing for lending operations is expected to primarily come from ADF resources

(national and regional), Fragile States Facility and ADB for private sector operations. In line

with the TYS, the Bank will put a greater effort in playing a catalytic role for regional integration.

The Bank will seek to mobilize co-financing from the development partners, such as the co-financing

with the EU of the Mano River Road Program, and private sector, particularly through participation

and support to regional private equity funds. It will also leverage on Bank’s own initiatives such as

the Africa50 Fund, EPSA and the Africa Trade Fund. Non-lending activities will benefit from grant

resources including Trust Funds and the NEPAD-IPPF.

5.5 Potential Risks and Mitigation Measures

The RISP identified three major risks to implementing the Strategy: (i) weak

commitment of member states to integration; (ii) duality and multiplicity of integration

architecture; nd (iii) political fragility. These risks are still relevant. To address them the Bank will

continue working on capacity building and increase its monitoring of the regional challenges through

43

The WA RISP will build on the award winning Multi-sector Support Project in Côte d’Ivoire, which addressed the

capacity deficit in providing services to victims of gender-based-violence. 44

This trend towards growing food imports coincided with a period of strong growth of merchandise exports, which has

led to a greater capacity of many countries to import. Nevertheless, there are concerns about the sustainability of this

import capacity, as it is based heavily on the export of non-renewable resources.

20

its regional knowledge program. In addition, the scarcity of ADF resources further to the latest ADF

replenishment represents a new major risk, leaving the Bank with limited resources to deliver on its

ambitions. The Bank shall therefore seek greater pooling of resources already available within the

Bank and establish of closer partnerships with other DPs, such as the EU.

VI. CONCLUSION AND RECOMMENDATION

6.1 It is proposed to maintain the WA-RISP’s strategic thrust during the remaining period (2014-2015), while refocusing the first pillar around infrastructure development and continuing its

capacity building support.

6.2 The Bank will also support new initiatives, such as the Sahel and the MRU Initiative, and

deepen its work on trade, transit and transport facilitation. On and beyond such initiatives, the

Bank will reach out to other development partners to increase collaborations, especially with the EU.

The WA-RISP will give a special focus to inclusiveness and transition to green growth through the

TYS’ three areas of special emphasis (fragility, gender and agriculture and food security).

6.3 It is recommended that CODE members approve the WA-RISP MTR (2011-2015) and

RPPR.

I

Annex 1. ECOWAS Monetary Cooperation Program Convergence Criteria

There are three sets of macroeconomic convergence programs in West Africa, namely ECOWAS, WAEMU, and WAMZ. Each of these

programs adopts an independent set of primary and secondary convergence criteria for multilateral surveillance. The macroeconomic

convergence indicators are not entirely uniform across the programs, and where similarities exist, the values for the indicators vary in some

instances. The WAEMU convergence criteria are overall stricter than those of ECOWAS or WAMZ, particularly on fiscal balance and price

inflation. Overall, and particularly for the secondary criteria, the countries seem quite far from achieving their convergence goals.

WEAMU Countries [2013 data] WAMZ Countries [2013 data]

PRIMARY CONVERGENCE CRITERIA

Ben

in

Bu

rkin

a

Fa

so

Cô

te

d’I

vo

ire

Ma

li

Nig

er

Gu

inea

Bis

sau

Sen

ega

l

To

go

Ga

mb

ia

Gh

an

a

Gu

inea

Lib

eria

Nig

eria

Sie

rra

Leo

ne

Ca

bo

Ver

de

WAMZ ECOWAS UEAMOA

Inflation ≤10% (Single

Digit)

End-period

≤5%

End-period

≤ 3%

Annual -average

3 3 2.8 3 2 1 0.7 3 5.3 11.7 11.9 7.7 8.5 9.9 1.5

Fiscal

balance/ GDP

≤4%

Excluding

grants

≤4%

Excluding

grants

≥ 0

Basic balance

0.4 -0.2 -1.5 -0.9 1.3 -1 -2.4 0.7 -3.3 -7.8 -5.2 -2.6 -1.8 0.0 -7.9

Central Bank

Financing

≤10%

Previous year’s

tax revenue

≤10%

Previous year’s

tax revenue

Not

Applicable

0.4

(201

2)

9.4

(201

2)

6.8

(201

2)

0.0

(201

2)

0.0

(201

2)

0.0

(2012)

N/A

Gross

External

Reserves

≥3 Months

(Months of

import cover)

≥6 Months

(Months of

import cover)

Not

Applicable

4.8

(201

2)

3.4

(201

2)

3.1

(201

2)

3 9.5

(201

2)

3.1

(2012)

N/A

Public

Debt/GDP

Not

Applicable

Not

Applicable

≤ 70%

Domestic &

External Debt

20.6 26.3 31.7 29.7 24.1 35.5 45.2 46.3

Payment

Arrears

Not

Applicable

Not

Applicable

Non-

accumulation

Arrears

0 0 0 0 0 0 0 0

Number of

Criteria

4 4 4 4 3 3 3 4 3 3 4 3 3 2 3 3 2 N/A

II

SECONDARY CONVERGENCE CRITERIA

WAMZ ECOWAS UEMOA

Arrears Non-

accumulation &

liquidation of

Domestic

arrears

Non-

accumulation &

Settlement of

all arrears

Not

Applicable

Tax Revenue

/GDP

≥20% ≥20% ≥17% 16.6 16.5 17.2 15.6 15.6 8.2 19.1 16.8 14.5 16.3 18 20.1 2.8 9.9 N/A

Salary

Mass/Tax

Revenue

≤35% ≤35% ≤35% 43.6 34.8 43.1 35.7 30.9 60.2 32.7 34.4 42 54.6 25 54.7 89.3 48.9 N/A

Public

Investment

From

Domestic

Receipts / Tax Revenue

≥20%

(Domestic

Receipts)

≥20%

(Tax Revenue)

≥20%

(Tax

Revenue)

23.3 48 27.9 18.7 41.8 12 36.4 20.4 85 58.3 36 37.7 21.8 39.2 11.3

(public

investm

ent)

Real Interest

Rate

>0

Savings

deposits less

inflation

(Positive)

>0

Savings deposits

less inflation

(Positive)

Not

Applicable

22.5 N/A N/A 9 14.9 8.1 6.3

Exchange

Rate Stability

±15

(WAMZ ERM

II)

±15

(Real Exchange

Rate)

Not

Applicable

8.7

(201

2)

52.9

(201

2)

71.3

(201

2)

N/A 12.9

(201

2)

40.9

(2012)

N/A

Current

Account

Balance/GDP

Not

Applicable

Not

Applicable

≥ -5%

(Excluding

grants)

-8.7 -5.6 -3.6 -5.1 -

23.5

-7.7 -9.4 -9.6

Number of

Criteria

6 6 4 0 1 2 1 1 1 3 1 2 0 2 1 3 2 N/A

Sources: WAEMU Commission, West African Monetary Institute, African Development Bank.

III

Annex 2: Indicative Program of Regional Operations and Economic and Sector Work as per the WA RISP 2011-

2015 and its effective implementation

Project Name Sector Est. Cost (in

million)

Co-financing (UA in million) Status

PILLAR I: LINKING REGIONAL MARKETS

1. Rehabilitation of the Lomé - Cotonou Road and

Transport Facilitation on the Abidjan-Lagos Corridor

Project

Road Transport UA 132 0.9 (WAEMU) Approved (2011)

2. Construction of the Trans-Gambia Bridge and Transport

Facilitation on the Trans-Gambian Corridor

Road Transport UA 90 0.63 (Governments) Approved (2011)

3. Boke-Kebo Road Rehabilitation Project Road Transport UA 60 Stand-by

4. Rehabilitation and Transport Facilitation of the Lomé -

Ouagadougou Corridor

Road Transport UA 252 9.46 (IsDB), 7.92 (KFW), 2.06

(EU), 3.6 (Prives), 23.95

(BOAD), 13.56 (EBID), 0.93

(WAEMU), 0.17 (UNFPA)

Approved (2012)

5. Integrated System of Multimodal Transport Transport UA 40 N/A Project done without

the Bank

6. Côte d’Ivoire-Liberia-Sierra-Leone-Guinea Power

Interconnection Project

Energy UA 331,51 88.57 (WB), 61.98 (IsDB), 8.55

(EU), UA 26.27 (KFW)

Approved (2013)

7. OMVG Energy Project, Phase I (Gambia, Guinea,

Guinea Bissau and Senegal)

Energy (production) UA 101 113 (WB), 34 (BOAD), 107

(IsDB), 74 (EIB), 22 (KFW), 241

(China Exim), 33 (AFD), 19.5

(Governments)

In process (2014)

8. Ghana-Burkina-Faso-Mali Power Interconnection

Project

Energy UA 70 N/A Postponed to 2016

9. FOMI Power Interconnection Project (Guinea and Mali) Energy € 165 N/A In process (study

completed, project

under review)

10. Adjaralla Hydroelectric Development Project Energy (production) € 247 N/A Stand-by

11. Emergency Power Supply Security Plan (400MW

Plan at Maria Gleta in Benin, 400MW Plan in Aboadze in

Ghana and 150MW Plan in OMVS System)

Energy (production) N/A N/A Stand-by

IV

PILLAR II: CAPACITY BUILDING

12. Strengthening ECOWAS/WAEMU Commission

Capacity

Capacity Building UA 30 N/A Under review

13. Program for Building Statistical Capacity in RMCs Capacity Building UA 40 N/A In process

ECONOMIC AND SECTOR WORK

14. A Role for Senegal in Regional Integration Multisector (Flagship) Completed

15. Study on Regional Integration and Stability: Integrated

Infrastructure Action Plans for Fragile States

Infrastructure (Flagship) Converted into 2 country studies on Liberia and Sierra

Leone and completed

16. Flagship Report- Nigeria Infrastructure Infrastructure (Flagship) Completed

17. A Regional Success Story: The Case of Cape Verde Multisector (Flagship) Completed

18. Study for the Creation of the ECOWAS Fund for the

Development of Transport and Energy (FODETE)

Energy In process (2014)

V

Annex 3: New Indicative Regional Operations and ESW In Addition to Those

Identified in the WA RISP 2011-2015

New Regional Operations Sector Est. Funding* Co-financing Status

PILLAR I: REGIONAL INFRASTRUCTURE DEVELOPMENT (former Linking Regional Market)

1. Trans-Saharan Road (Chad, Niger, Algeria) Road

Transport

UA 120 M N/A Approved (2013)

2. Mali - Côte d’Ivoire Cross-Border Road Road

Transport

UA 98.8 M UA 22.5 M IsDB

UA 0.8 M WAEMU

In pipeline

(2015)

3. Mano River Union Road Transport Program (Phase 1):

Cross-Border Road Corridors Project (Côte d’Ivoire,

Guinea) and Fish Town - Harper Road Project Phase 2

(Côte d’Ivoire, Liberia)

Road

Transport

Phase 1: UA

265 M

Phase 2:UA 75

M

UA 18 M

(Governments)

USD 80 M WB

In the pipeline

(2014)

4. Mano River Union Road Transport Program (Phase 2) :

Trans-West African Coastal Highway – Bo - Bandajuma –

Zimmi-MRU Bridge (Liberia Border) [150 km] & MRU

Bridge – Klay - Monrovia [117km]

Road

Transport

UA178 M € 107 M (EU) and

UA 10 M (OFID)

In the pipeline

(2015)

5. Program to Strengthen Resilience to Food Insecurity

(Burkina Faso, Chad, Gambia, Mali, Mauritania, Niger,

Senegal)

Agriculture

Infra. & Food

security

UA 155 M UA 27 M

(Governments)

In process (2014)

6. Construction Project of Rosso Bridge (Senegal,

Mauritania)

Road

Transport

UA 50 M € 40 M (EU) In the pipeline

(2015)

7. Program to Support the Air Transport Sector in Central

and Western Africa (PASTA-CO)

Air Transport UA 22,3 M N/A In process (2014)

8. WAEMU Transport and Trade Facilitation All Transport

and trade

UA 7 M UA 1 M (WEAMU) In the pipeline

(2014)

PILLAR II: CAPACITY BUILDING

9. Senegal Customs Modernization & Corridor

Management Program

All Transport

and trade

UA 300,000 USD 260,000

(Senegalese

customs / Gainde

2000)

Pre-approved

by AfTRA

(2014)

10. WAEMU Transport and Trade Facilitation Project –

Phase I

All Transport

and trade

UA 361,000 USD 50,000

(WAEMU)

Pre-approved

by AfTRA

(2014)

11. Preparation of Establishing Continental PKI

Infrastructure and Trade Portal for electronic verification

and digital signature

All Transport

and trade

UA 271,000 USD 479,000

(Africa Alliance

for eCommerce)

Pre-approved

by AfTRA

(2014)

*Total Bank financing, subject to availability of funding

ECONOMIC AND SECTOR WORK Sector Est. Cost Funding Key Dept. Key partner

1. Unlocking the Potential for Mano River,

Infrastructure Study for Mano River

Road Transport,

Energy

UA 80 K Canadian TF ORWA/

OICT/ ONEC/

ONRI

Mano River Union

2. Fragility Assessment for Mano River Multi-Sector UA 16 K Admin ORFS Mano River Union

3. Feasibility Study on Road Corridors under

the MRU Initiative

Road Transport USD 1,5 M IPPF ONRI

4. Fiscal Regime on Mineral Taxation

Harmonization Study

Governance UA 80 K FSF Pillar 3 OSGE

5. Gender Study in the Sahel Gender UA 70 K NTF ORWA/ORQR

/ SEOG/

ORFS

6. Feasibility Study Abidjan/Lagos Highway Transport UA 5 M FAPA, IPPF ONRI ECOWAS

7. Study on “Sustainable Market Access for

African Road Transport” (SMART)

Road Transport UA 400 K OITC

8. Technical, Economic, and Financial Study

for the Abidjan- Yamoussoukro-Ougadougou

Highway (Phase 2)

Road Transport USD 6,5 M IPPF ONRI WAEMU

USD 12 M

9. Benin – Nigeria Interconnection Study Energy USD 3,6 M IPPF ONRI

VI

Annex 4a: Status of RISP Outputs at Mid-term (IOP 2011-2015 and ongoing projects)

A= Achieved; OT= On-Track; BS= Behind Schedule

Pillars Mid-term Outputs

Indicators (by RISP)

Status of Mid-term

Outputs Indicators

by April 2014

Statu

s Remarks

PIL

LA

R I

LIN

KIN

G R

EG

ION

AL

MA

RK

ET

S (i) Investments in roads

corridors and transport

and trade facilitation

Construction works on the Lomé-

Cotonou, the Lomé – Ouagadougou,

and the Trans-Gambia bridge have

commenced and are on-going

Lomé-Cotonou under

construction

OT Execution rate at

40%, slightly

behind schedule

due to a delay in

disbursing but the

works are catching

up

Lomé-Ouagadougou

under construction\ BS

Construction works

scheduled to start

in September 2014,

due to procurement

difficulties

Trans-Gambia study

completed,

procurement process

ongoing

BS

Delays in

signatures, causing

delays in

procurement and

study completion.

Since 2013,

significant progress

has been made

Draft reports of the EU-funded

detailed engineering design studies

available

3 studies completed

(one market study,

one on economic and

financial profitability,

one on institutional

arrangements for the

railway project)

A

Studies completed

in 2012 and

submitted to

ECOWAS

(ii) Regional energy

production and markets

integration

Construction works on the OMVG,

CLSG projects commenced and are

on-going.

OMVG under

evaluation

BS Evaluation to be

completed in 2014

CLSG under bidding

process

OT

PIL

LA

R I

I: C

AP

AC

ITY

BU

ILD

ING

FO

R

FF

EC

TIV

E I

MP

LE

ME

NT

AT

ION

OF

RE

GIO

NA

L I

NT

EG

RA

TIO

N A

GE

ND

A

(i) Capacity building for

financial sector

integration

Installation of the Real Time Gross

Settlement, Automated Clearing

House, Automated Check

Processing, and Scriptless Securities

Settlement systems, in the Gambia,

Guinea, Liberia, and Sierra-Leone

about 90% complete

A These outputs were

achieved with the

completion of the

WAMZ 2007 and

2010 projects

(ii) Capacity building

for effective policy and

regional projects

implementation

Training and consultancy services

provided to WAPP

BS WAPP project

approved last

quarter 2013

(iii) Support to Regional

Centers of Excellence

Support provided to strengthen

ECOWAS identified centers of

excellence.

Evaluation to be

completed in 2014

(iv) Statistical support to

ECOWAS Institutions

Bank Group’s Program for Building

Statistical Capacity in RMCs.

OT Evaluation to be

completed in 2014

VII

Annex 4b: Status of RISP Outcomes at Mid-term (IOP 2011-2015 and ongoing projects) A= Achieved; OT= On-Track; BS= Behind Schedule

Pillars Mid-term Outcomes Indicators (by

RISP)

Status of Mid-term

Outcomes

Indicators by end

2013

Status Remarks

PIL

LA

R I

: L

INK

ING

RE

GIO

NA

L

MA

RK

ET

S

(i) Investments in roads

corridors and transport

and trade facilitation

About 750 jobs created in the road

infrastructure development related to

Lomé-Cotonou, the Lomé –

Ouagadougou, and the Trans-Gambia

bridge works

750 jobs created

OT Will be exactly

measured upon

project

completion report

Progress on consultations with

donors for the mobilization of

resources for the railways sector

Consultations were

held in Niger with

ADB, further

consultations to be

organized

BS Meeting between

Ministries of

Transport in 2014,

with ADB and EU

as interested

partners

ii) Regional energy

production and markets

integration

About 2000 and 500 direct and

indirect jobs respectively are created

during construction phase of the

OMVG energy project

BS Project under

evaluation

5000 jobs created during

implementation of the CLSG Project

BS CLSG Project

only approved in

2013

PIL

LA

R I

I:

CA

PA

CIT

Y B

UIL

DIN

G

(i) Capacity building for

financial sector

integration

Not applicable

(ii) Capacity building

for effective policy and

regional projects

implementation

Improvement in implementation of

WAPP priority projects

BS WAPP project

approved last

quarter 2013

(iii) Support to Regional

Centers of Excellence

Use of science and technology to

develop other sectors, social

infrastructure, industry, environment

and climate change, makes progress

in ECOWAS

Strengthened culture of science and

technology in the region

Agents of regional integration trained

with shared approach on integration

Enhanced capacity in technological

skills for economic transformation

Project under

evaluation

(iv) Statistical support to

ECOWAS Institutions

Bank Group’s Program for Building

Statistical Capacity in RMCs

Project under

evaluation

VIII

Annex 5: List of Multinational Operations in West Africa Long name Sector Name Appr. Date Closing Date Net loan Disb. Ratio

Projet appui filliere coton -WAEMU Agriculture 29.11.2006 30.06.2014 2,000,000.00 75.75

Projet de gestion durable du betail rumi Agriculture 25.01.2006 31.12.2014 10,240,000.00 83.22

Projet de reforestation et de réhabilita Environment 29.11.2011 31.12.2016 173,435.61 59.32

Apiculture améliorée et reforestation Environment 30.11.2011 31.12.2016 204,261.48 57.22

Conservation international foundation Environment 09.06.2010 30.06.2015 900,462.48 12.78

Appui au programme élargi de formation Environment 15.05.2011 31.12.2016 5,862,832.40 69.09

Appui à la participation multi acteurs Environment 13.12.2011 31.12.2016 1,463,150.55 64.22

FAPA technical assistance to EBID-BIDC Finance 26.02.2013 31.12.2018 405,196.75 0

BOAD ligne de credit Finance 30.01.2008 31.12.2014 30,755,902.58 100

BOAD FAPA TA Finance 04.02.2008 31.12.2014 409,078.19 26.06

BOAD- LDC II augmentation de capital Finance 23.02.2011 31.12.2016 49,209,444.13 100

Payments systems dev project in WAMZ Finance 09.07.2008 30.06.2014 14,000,000.00 82.21

Supplementary grant to WAMI for the mult Finance 09.11.2010 30.06.2014 5,000,000.00 20.62

Institutional support - Mano River Union Multi-Sector 01.10.2013 30.12.2018 942,640 0

CLSG - WAPP- Sierra Leone Power 06.11.2013 30.12.2018 703,000 0

CLSG - Côte d'Ivoire Power 06.11.2013 30.12.2018 26,173,000 0

CLSG Liberia Power 06.11.2013 30.12.2018 8,102,000 0

CLSG Sierra Leone Power 06.11.2013 30.12.2018 88,355,000 0

CLSG Guinee Power 06.11.2013 30.12.2018 28,910,000 0

CLSG Guinee Power 06.11.2013 30.12.2018 834,000 0

CLSG - WAPP- Côte d'Ivoire Power 06.11.2013 30.12.2018 721,000 0

CLSG - WAPP- Guinee Power 06.11.2013 30.12.2018 781,000 0

CLSG - electrification rurale Power 06.11.2013 30.12.2018 6,106,000 0

CLSG-rural electrification -Liberia Power 06.11.2013 30.12.2018 16,838,000 0

CLSG-rural electrification -Liberia Power 06.11.2013 30.12.2018 1,120,000 0

CLSG- rural electrification Sierra Leone Power 06.11.2013 30.12.2018 13,432,000 0

CLSG-rural electrification Guinea Power 06.11.2013 30.12.2018 10,275,000 0

Assistance à l'OMVG- réalisation énergie Power 18.04.2007 31.12.2013 343,402.47 100

WAEMU appui à l'enseignement supérieur Social 24.07.2006 15.12.2014 20,000,000.00 55.82

Support to AUST & 2IE project Social 18.03.2009 15.12.2014 12,000,000.00 44.68

Railways loop Coto-Niam-Ouaga-Abid Transport 16.06.2013 31.12.2018 1,315,789.47 0

Port autonome de San Pedro Phase II Transport 27.12.2012 31.12.2017 852,686.76 0

WAEMU -Ghana -programme routier 1 Transport 19.11.2003 30.12.2013 62,680,078.37 91.48

WAEMU -Ghana -programme routier 1 Transport 19.11.2003 30.12.2013 3,500,000.00 74.46

Burkina-Faso facilitation corridor Transport 27.06.2012 31.12.2018 84,600,000.00 0

Togo – facilitation Transport 27.06.2012 31.12.2018 30,230,000.00 0

Togo – facilitation Transport 27.06.2012 31.12.2018 21,500,000.00 0

Projet d'amenagement de la route Labe-Se Transport 04.12.2006 31.12.2013 5,580,000.00 28.62

Projet d'amenagement de la route Labe-Se Transport 04.12.2006 31.12.2013 30,320,000.00 99.51

Programme d'amenagement routier et de fa Transport 21.12.2005 31.12.2013 56,213,265.19 100

Programme d'amenagement routier et de fa Transport 21.12.2005 30.06.2014 7,900,000.00 5.82

Programme d'amenagement routier et de fa Transport 31.03.2006 31.10.2014 5,980,190.62 0

Appui mise en place observ. Eau CEDEAO WAS 22.11.2013 31.12.2018 523,487.61 0

667,455,305 31

IX

Annex 6: Overview of Regional Operations Directly Managed by the RECs

Bank’s Active Portfolio at the ECOWAS Commission – March 2014

Bank’s Active Portfolio at the WAEMU Commission – March 2014

X

Annex 7: WA Regional Portfolio Improvement Plan

Identified

Problems

Problem’s

Sources

Recommended Actions Responsible Timeline

Very late start of

operations

managed by the

RECs (more than

two years on

average)

Low level of

maturity and weak

project ownership

by the RECs

Lack of capacity

in RECs

RECs have to be more

engaged in project

preparations

AfDB’s technicians to

strengthen local

support

Regular training on

Bank’s procedures for

staff at the RECs

Setting up and

operationalization of

dedicated units for

project implementation

at REC level

WAEMU,

ECOWAS,

OMVS, OMVG

BFFO, SNFO,

ORNG

FFCO, ORPF

WAEMU,

ECOWAS,

OMVS, OMVG

Ongoing

Dec. 2014

Sept. 2014

Ongoing

Weakness in

project

monitoring

Low frequency of

supervision

undertaken by the

AfDB

Inadequate

monitoring

mechanism at the

RECs

Transfer more project

management

responsibilities to

AfDB’s offices in the

countries

Conduct periodic

monitoring missions on

projects status

ORWA, ORNG

and Sector

Departments

WAEMU,

ECOWAS,

OMVS, OMVG

Dec. 2014

June 2014

Inadequate level

of communication

or exchange

between AfDB

and the RECs

Lack of regular

consultation

mechanism

between the

parties

Establish regular

(quarterly) meetings on

portfolio

implementation status

Share good practices

and experiences

between institutions

BFFO,ORNG,

SNFO +

WAEMU,

ECOWAS,OM

VS, OMVG)

RECs

Ongoing

Ongoing

Significant delays

in loans/grant

signature

Lack of proper

follow-up on

conditions of

signature and

effectiveness

Field Offices and RECs

to closely monitor on a

monthly basis status of

signature of loans or

grants

BFFO, ORNG,

SNFO

RECs

June 2014

XI

Annex 8: Consultative Process and Timeframe for the Preparation of the WA-

RISP MTR

The WA-RISP MTR Team was composed of ORWA/ORNG’s regional economists and country

portfolio officers, as well as of sector experts from ONRI, OWAS, OSAN, OPSM, ORSF and

OITC, who carried out the preparation mission.

The Bank has engaged in a close collaboration with the two major regional institutions, namely

ECOWAS and WAEMU, as well as with the Governments, DPs, private sector, civil society and

other relevant stakeholders to ensure a participatory approach in the assessment of the

implementation and performance of the WA-RISP. Discussions have evolved around the

effectiveness of this RISP and whether a strategic adjustment is recommended at the mid-term.

A preparation mission has included a major seminar in Abuja (ECOWAS Headquarters) with all

stakeholders on the strategic relevance and implementation of regional operations, as well as to

collect data and information required to prepare the full MTR report. The seminar was preceded by

a portfolio review varied by the field offices of Nigeria, Senegal, and Burkina Faso with key RECs.

Upon return from the preparation mission, the full MTR report was prepared and submitted for

review through the Bank’s internal review process

Activity Indicative Date

Submit RISP MTR CN to CT & Readiness Review 07 February 2014

Country Team Review of RISP MTR Concept Note 21 February 2014

Submit RISP MTR CN to VP 25 February 2014

VP Clearance of CN 04 March 2014

Mission/ Abuja workshop 16-20 March 2014

Drafting RISP MTR 21 March - 08

April 2014

ORWA Director Clearance 10 April 2014

Peer Review of RISP MTR 16 April 2014

Submit to CT 18 April 2014

Country Team Review of draft RISP MTR 29 April 2014

VP Clearance of RISP MTR 28 May 2014

RISP MTR submission to PRST 29 May 2014

Translation of RISP MTR (21 days) 30 May 2014

Submit to CODE (4 day lead) 18 June 2014

CODE LOTB 24 June 2014

XII

Annex 9: Conclusions of the Regional Dialogue Mission in Abuja, March 2014

REGIONAL CONSULTATION AND DIALOGUE WORKSHOP

17-18 March 2014

ABUJA, NIGERIA

Participants:

African Development Bank (AfDB), Economic Community Of West African States (ECOWAS),

Central Bank of West African States (BCEAO), Union Economique et Monétaire Ouest Africaine

(WEAMU), Comité Inter-Etat de Lutte Contre la Sècheresse au Sahel (CILLS), Mano River Union

(MRU), West African Power Pool (WAPP), Organisation pour la Mise en Valeur du fleuve

Gambie (OMVG). Organisation pour la Mise en Valeur du fleuve Sénégal (OMVS), West African

Monetary Institute (WAMI), Conseil Régional de l'Epargne Publique et des Marchés

Financiers (CREPMF), Economic and Statistical Observatory for Sub-Saharan Africa –

Observatoire économique et statistique d'Afrique subsaharienne(AFRISTAT), Organisation du

Corridor Abidjan-Lagos (OCAL). Borderless Alliance, Fédération des Organisations Patronales

de l'Afrique de l'Ouest (FOPAO), Institute for Security Studies (ISS), African Center for Economic

Transformation (ACET).

Highlight of discussions and key recommendations

The objective of the workshop was for the African Development Bank (AfDB or the Bank) to

present the current status of implementation of its regional integration strategy for West Africa

(2011-2015) to key regional stakeholders, as well as to gather recommendations from the

participants for the remaining period 2014/2015.

Following the welcome statement of Mr. DORE, Director of the Nigeria Department, AfDB and the

opening remarks of Mrs. TOURE, Representative of the WAEMU Commission, the regional

workshop was officially opened by H.E. OUEDRAOGO, President of the ECOWAS Commission.

The discussions focused on the regional strategies of the three major institutions present

(ECOWAS, WEAMU, AfDB), with a special attention to the interventions of the Bank in West

Africa. The participants shared their observations and comments during the AfDB mid-term review

of its West Africa Regional Integration Strategy.

The key recommendations are as follows:

Fragility in many of West Africa States (8 out of the 15 West African countries are fragile)

demonstrates that the challenge is both national and regional; responses to this challenge must

take into consideration and propose regional approaches that are adaptable to the national

context where need be. Furthermore, there is a clearer need to give a stronger focus on fragility

issues within the Bank’s strategy and interventions in the region, as well as to strengthen the

support to address various vulnerabilities.

A reference framework should be set up between ECOWAS and the Bank so as to enable more

transparent and deeper consultative process of regional project/operations identification. This

would help the Bank to have a well-defined outline of the RECs’ interests and priorities when

formulating and selecting projects.

Coordination mechanisms and alignment of procedures between the ECOWAS and the Bank

can be further improved and strengthened. As such, regional integration efforts are even more

valuable when supported by capacity building and knowledge transfer mechanisms.

XIII

ECOWAS has recognized the need to work closely with its Member States in the

implementation of regional integration reforms, which are agreed at ECOWAS level but lack

operationalization at national level.

The process of selection of Project Implementation Unit (PIU) staff for regional operations

should be further clarified to enable a common understanding of the role of the PIUs.

Harmonization of procedures of funding agencies and improved coordination among agencies is

critical for successful project implementation.

Regular consultations between the Bank and ECOWAS Commissioners and Directorates should

be held along thematic areas e.g. Infrastructure, private sector, agriculture, etc. Also, regular

joint portfolio review meetings and improved communication could enable a more coordinated

monitoring of project implementation and follow up.

Potential benefits from effective decentralization and delegation of responsibilities, including at

AfDB level, to enhance timely and adequate responses to project identification, implementation

and monitoring.

The Bank should review its own internal procedures with a view to simplify in particular the

conditions for first disbursement and granting of "no objection".

Deepen the support to private sector and cross-country collaboration among companies to

enable it to play a more prominent role in regional integration, trade facilitation, knowledge

transfer and financing.

Quality at entry and quality at exit of regional projects need to be monitored more closely, in

order to reduce the risks of delays and eligibility of abandon. For instance, regular consultations

between the Bank and the implementing partners have proven effective tools of monitoring.

Increase knowledge generation and sharing, including through the creation of a network of

research and effective engagement with ECOWAS macroeconomic policy and research

department.

Key areas were identified that need strengthened collaboration between the Bank and the RECs,

eg. free movement of persons, labor mobilization, statistics data sharing, alignment of

procedures and resources mobilization.

Capacity building has been highlighted as an area the Bank should emphasize, be it through

technical assistance, adequate trainings or support in the pipeline development (preparing,

promoting, and mobilizing funding for bankable projects).

Knowledge studies undertaken by the Bank are a valuable source of knowledge that should be

widely disseminated.

XIV

Annex 10: Original Indicative Results Matrix of the WA-RISP 2011-2015 Regional

integration

objectives

Constraints to achieving

regional integration

objectives

Final Outputs Final Outcomes Mid-term Outputs Mid-term outcomes Indicative program of new

operations (2011-2015) and

ongoing projects (expected at the end of RISP period in 2015) (expected at mid-term of RISP period in 2013)

Pillar I: Linking Regional Markets

Enhance the

linkage of

regional

markets,

creating an

open and

seamless

regional

market with

opportunitie

s for rapid

and

sustained

regional

growth, job

creation,

and poverty

reduction

(i) Investments in roads corridors and transport and trade facilitation

Poor and inadequate

national and regional

transport infrastructure;

Absence of maintenance

culture –dilapidated

transport infrastructure,

particularly roads.

Impediments to cross-

border transit.

Lomé-Cotonou (77.5 km) on the Abidjan-

Lagos Corridor rehabilitated by 2014;

410 km on the Lomé – Ouagadougou

Corridor rehabilitated by 2015;

Manantali-Tambanga (100 km) and

Babaroto-Mahina (6km) of the integrated

multimodal OMVS System rehabilitated

The Trans-Gambia bridge on the Dakar-

Lagos corridor is constructed by 2016

The Hillacondji joint border posts is

constructed by 2014;

Users of the rehabilitated corridors are

sensitized to trade facilitation measures

The Trans-Gambia joint border posts is

constructed by 2016

Support provided to regional training

programs & institutions for trade

facilitation and standards.

Creation of 1475 jobs in road

infrastructure development works (1250

and 225 jobs on the Lomé –

Ouagadougou and Lome-Cotonou

corridors works respectively)

Creation of about 200 jobs during

construction of the Trans-Gambia

Bridge by 2016.

Travel time on the Atakpame-Kara road

reduced from 12 days in 2011 to 8 days

in 2015

Travel time between Pahou –

Hillacondji on the Abidjan-Lagos

corridor road reduced from 115mn in

2010 to 55 mn in 2014

Transit time on the Trans-Gambian

Corridor reduced from 34mn before the

bridge to 1.5 in 2016 mn after the

bridge.

Construction works on the

Lomé-Cotonou, the Lomé

– Ouagadougou, and the

Trans-Gambia bridge

have Commenced and are

on-going

About 750 jobs

created in the road

infrastructure

development related

to Lomé-Cotonou,

the Lomé –

Ouagadougou, and

the Trans-Gambia

bridge works.

Rehabilitation and transport

facilitation of the Lomé-

Ouagadougou Corridor

Project

Rehabilitation of the Lomé-

Cotonou Road and transport

facilitation on the Abidjan-

Lagos Corridor Project

OMVS Integrated

Multimodal Transport

System Project

Trans-Gambia Bridge on the

Dakar - Lagos Corridor

Guinea-Guinea Bissau:

Boke-Quebo Road Project

Regionally unconnected

and inefficient railway

systems

Dialogue with stakeholders to ensure

timely completion of the on-going EU-

financed detailed engineering design

studies for the prioritized B2 and B1

links.

High-Level consultations held with

potential donors on investments in

railways in West Africa.

Progress on resource mobilization for

the railways sector in West Africa

Draft reports of the EU-

funded detailed

engineering design

studies available

Progress on

consultations with

donors for the

mobilization of

resources for the

railways sector

None

(ii) Regional energy production and markets integration

Deficiency in clean

energy supply;

Inadequate integration of

regional energy markets

Construction of the 240 MW

hydroelectric dam and plant at Kaléta in

Guinea (OMVG energy Project),

Construction of 1700 kilometers of high

tension transmission lines (OMVG

Project)

1360 km of 225 kV line interconnecting

Côte d’Ivoire, Liberia, Sierra Leone and

Guinea (CLSG) constructed in 2015

Construction of a 742 km transmission

line, three new substations, and extension

works for the 225 kV incoming and

outgoing transmission lines between

About 4400 and 1400 direct and indirect

jobs respectively are created during

construction phase of the OMVG energy

project, and 250 permanent jobs and 350

indirect jobs created during exploitation

of the plant from 2016

Average number of blackouts in the

OMVG countries reduced from 600 to

between 150 and 200 by 2016.

The costs of electricity reduced to Euro

11,5 cents by 2016 from Euro 15 cents

in 2016 in OMVG Countries

5000 jobs during implementation and

Construction works on the

OMVG, CLSG projects

Commenced and are on-

going.

About 2000 and 500

direct and indirect

jobs respectively are

created during

construction phase

of the OMVG

energy project,

5000 jobs created

during

implementation of

the CLSG Project

Côte d’Ivoire-Liberia-Sierra

Leone-Guinée,

Interconnexion Power

Project ;

OMVG energy program 1.

Gambia-Guinée-Guinéa-

Bissau-Senegal ; 2.

Hydroelectric sites at Kaleta

(240 MW) and

Sambangalou (128 MW) ;

Han (Ghana) – Bobo

Dioulasso (Burkina Faso) –

Sikasso (Mali) – Bamako

XV

Regional

integration

objectives

Constraints to achieving

regional integration

objectives

Final Outputs Final Outcomes Mid-term Outputs Mid-term outcomes Indicative program of new

operations (2011-2015) and

ongoing projects (expected at the end of RISP period in 2015) (expected at mid-term of RISP period in 2013)

Ghana-Burkina-Faso, and Mali. 450 permanent jobs after commissioning

of the CLSG Project

Electricity access rate in CLSG

increased from 9% in 2010 and 13% in

2015 on average

(Mali))- Interconnection

power project

Guinea-Mali –

Interconnexion Power

Project.

Pillar II: Capacity building for effective implementation of regional integration agenda

Strengthen

regional

capacity to

advance the

regional

integration

agenda

(i) Capacity building for financial sector integration

Inadequate capacity to

carry out the payments

systems integration

project of the WAMZ

Real Time Gross Settlement, Automated

Clearing House, Automated Check

Processing, and Scriptless Securities

settlement systems installed in the

Gambia, Guinea, Liberia, and Sierra-

Leone to support financial and monetary

integration in the WAMZ.

Progress on financial and monetary

integration within WAMZ as measured

by:

Same day funds transfers within WAMZ

achieved.

Volume of high value funds transfers in

the Gambia, Guinea, Liberia, and

Sierra-Leone increases by 45% from

2007 level

Installation of the Real

Time Gross Settlement,

Automated Clearing

House, Automated Check

Processing, and Scriptless

Securities Settlement

systems, in the Gambia,

Guinea, Liberia, and

Sierra-Leone about 90%

complete.

Not applicable. WAMZ Payment System

Development Project (the

Gambia, Guinea, Liberia,

and Sierra Leone).

(ii) Capacity building for effective policy and regional projects implementation of

Slow process of

development and

implementation of

regional energy projects

Capacity building provided to the

WAPP in the context of the CLSG

interconnection project

Efficient implementation of the WAPP

priority projects

Training and consultancy

services provided to

WAPP

Improvement in

implementation of

WAPP priority

projects

Côte d’Ivoire-Liberia-Sierra

Leone-Guinée,

Interconnexion Power

Project.

(iii) Support to Regional Centers of Excellence

Weak regional capacity

to undertake research

and copy/adapt/develop

science and technology;

Absence of regional

SPS standards;

Lack of harmonized

regional systems;

Skills shortage for

implementation of

regional projects.

Support provided to strengthen

ECOWAS identified centers of

excellence.

Use of science and technology to

develop other sectors, social

infrastructure, industry, environment

and climate change, makes progress in

ECOWAS;

Strengthened culture of science and

technology in the region;

Agents of regional integration trained

with shared approach on integration;

Enhanced capacity in technological

skills for economic transformation.

Idem as final outputs. Idem as final

outcomes.

Regional Centres of

Excellence dealing with

infrastructure and public

governance.

(iv) Statistical support to ECOWAS Institutions

Weak institutional

structure and capacity in

West Africa to meet the

regional statistical

responsibilities.

Support provided to national and

regional statistical structures in line with

the Bank Group’s Program for Building

Statistical Capacity in RMCs.

See Bank Group’s Program for Building

Statistical Capacity in RMCs.

Bank Group’s Program

for Building Statistical

Capacity in RMCs.

Bank Group’s

Program for

Building Statistical

Capacity in RMCs

Bank Group’s Program for

Building Statistical

Capacity in RMCs.

XVI

Annex 11: Revised Indicative Results Matrix of the WA-RISP 2011-2015 at MTR Regional

integration

objectives

Constraints to achieving

regional integration

objectives

Final Outputs Final Outcomes Mid-term Outputs Mid-term outcomes Indicative program of new

operations (2011-2015)

and ongoing projects (expected at the end of RISP period in 2015) (expected at mid-term of RISP period in 2013)

Pillar I: Regional Infrastructure Development

Enhance the

linkage of

regional

markets,

creating an

open and

seamless

regional

market with

opportunitie

s for rapid

and

sustained

inclusive

regional

growth,

equitable

job

creation,

and poverty

reduction

(iii) Investments in roads corridors and transport and trade facilitation

Poor and inadequate

national and regional

transport infrastructure;

Absence of maintenance

culture –dilapidated

transport infrastructure,

particularly roads.

Impediments to cross-

border transit.

Lomé-Cotonou (77.5 km) on

the Abidjan-Lagos Corridor

rehabilitated by 2014;

410 km on the Lomé –

Ouagadougou Corridor

rehabilitated by 2015;

Manantali-Tambanga (100

km) and Babaroto-Mahina

(6km) of the integrated

multimodal OMVS System

rehabilitated

The Trans-Gambia bridge on

the Dakar-Lagos corridor is

constructed by 2016

The Hillacondji joint border

posts is constructed by 2014;

Users of the rehabilitated

corridors are sensitized to

trade facilitation measures

The Trans-Gambia joint

border posts is constructed by

2016

The Trans-Saharan road

works and related works in

Chad and Niger are under

construction (new)

Support provided to regional

training programs &

institutions for trade

facilitation and standards.

Creation of 1475 jobs in road

infrastructure development works

(1250 and 225 jobs on the Lomé –

Ouagadougou and Lome-Cotonou

corridors works respectively)

Creation of about 200 jobs during

construction of the Trans-Gambia

Bridge by 2016.

Travel time on the Atakpame-Kara

road reduced from 12 days in 2011

to 8 days in 2015

Travel time between Pahou –

Hillacondji on the Abidjan-Lagos

corridor road reduced from 115mn

in 2010 to 55 mn in 2014

Transit time on the Trans-Gambian

Corridor reduced from 34mn before

the bridge to 1.5 in 2016 mn after

the bridge.

By 2018: Increase of traffic at land

borders (87% between

Algeria/Niger and 375% between

Niger/Chad)

By 2018: Reduction of travel time

along the Trans-Saharan road from

2 days to 3.5 hours

(Assamakka/Arlit) and from 5 days

to 5.5 hours (Niger

border/Ndjamena)

By 2018: Creation of about 75,000

person/days (20% by women and %

by young people) (new)

Construction works

on the Lomé-

Cotonou, the Lomé –

Ouagadougou, and

the Trans-Gambia

bridge have

Commenced and are

on-going

About 750 jobs created

in the road

infrastructure

development related to

Lomé-Cotonou, the

Lomé – Ouagadougou,

and the Trans-Gambia

bridge works.

Rehabilitation and

transport facilitation of

the Lomé-Ouagadougou

Corridor Project

Rehabilitation of the

Lomé-Cotonou Road and

transport facilitation on

the Abidjan-Lagos

Corridor Project

OMVS Integrated

Multimodal Transport

System Project

Trans-Gambia Bridge on

the Dakar - Lagos

Corridor

Guinea-Guinea Bissau:

Boke-Quebo Road Project

Trans-Saharan Road

(Chad, Niger, Algeria)

Regionally unconnected

and inefficient railway

systems

Dialogue with stakeholders to

ensure timely completion of

the on-going EU-financed

detailed engineering design

studies for the prioritized B2

and B1 links.

High-Level consultations held

Progress on resource mobilization

for the railways sector in West

Africa

Draft reports of the

EU-funded detailed

engineering design

studies available

Progress on

consultations with

donors for the

mobilization of

resources for the

railways sector

None

XVII

Regional

integration

objectives

Constraints to achieving

regional integration

objectives

Final Outputs Final Outcomes Mid-term Outputs Mid-term outcomes Indicative program of new

operations (2011-2015)

and ongoing projects (expected at the end of RISP period in 2015) (expected at mid-term of RISP period in 2013)

with potential donors on

investments in railways in

West Africa.

(iv) Regional energy production and markets integration

Deficiency in clean energy

supply;

Inadequate integration of

regional energy markets

Construction of the 240 MW

hydroelectric dam and plant at

Kaléta in Guinea (OMVG

energy Project),

Construction of 1700

kilometers of high tension

transmission lines (OMVG

Project)

1360 km of 225 kV line

interconnecting Côte d’Ivoire,

Liberia, Sierra Leone and

Guinea (CLSG) constructed in

2015

Construction of a 742 km

transmission line, three new

substations, and extension

works for the 225 kV

incoming and outgoing

transmission lines between

Ghana-Burkina-Faso, and

Mali..

About 4400 and 1400 direct and

indirect jobs respectively are

created during construction phase

of the OMVG energy project, and

250 permanent jobs and 350

indirect jobs created during

exploitation of the plant from 2016

(% of jobs created for women and

young people)

Average number of blackouts in the

OMVG countries reduced from 600

to between 150 and 200 by 2016.

The costs of electricity reduced to

Euro 11,5 cents by 2016 from Euro

15 cents in 2016 in OMVG

Countries

5000 jobs during implementation

and 450 permanent jobs after

commissioning of the CLSG

Project

Electricity access rate in CLSG

increased from 9% in 2010 and

13% in 2015 on average

Construction works

on the OMVG,

CLSG projects

Commenced and are

on-going.

About 2000 and 500

direct and indirect jobs

respectively are

created during

construction phase of

the OMVG energy

project,

5000 jobs created

during implementation

of the CLSG Project

Côte d’Ivoire-Liberia-

Sierra Leone-Guinée,

Interconnexion Power

Project ;

OMVG energy program

1. Gambia-Guinée-

Guinéa-Bissau-Senegal ;

2. Hydroelectric sites at

Kaleta (240 MW) and

Sambangalou (128 MW) ;

Han (Ghana) – Bobo

Dioulasso (Burkina Faso)

– Sikasso (Mali) –

Bamako (Mali))-

Interconnection power

project

Guinea-Mali –

Interconnexion Power

Project.

Pillar II: Capacity building for effective implementation of regional integration agenda

Strengthen

regional

capacity to

advance the

regional

integration

agenda

(v) Capacity building for financial sector integration

Inadequate capacity to

carry out the payments

systems integration project

of the WAMZ

Real Time Gross Settlement,

Automated Clearing House,

Automated Check Processing,

and Scriptless Securities

settlement systems installed in

the Gambia, Guinea, Liberia,

and Sierra-Leone to support

financial and monetary

integration in the WAMZ.

Progress on financial and monetary

integration within WAMZ as

measured by:

Same day funds transfers within

WAMZ achieved.

Volume of high value funds

transfers in the Gambia, Guinea,

Liberia, and Sierra-Leone increases

by 45% from 2007 level

Installation of the

Real Time Gross

Settlement,

Automated Clearing

House, Automated

Check Processing,

and Scriptless

Securities

Settlement systems,

in the Gambia,

Guinea, Liberia, and

Sierra-Leone about

90% complete.

Not applicable. WAMZ Payment System

Development Project (the

Gambia, Guinea, Liberia,

and Sierra Leone).

XVIII

Regional

integration

objectives

Constraints to achieving

regional integration

objectives

Final Outputs Final Outcomes Mid-term Outputs Mid-term outcomes Indicative program of new

operations (2011-2015)

and ongoing projects (expected at the end of RISP period in 2015) (expected at mid-term of RISP period in 2013)

(vi) Capacity building for effective policy and regional projects implementation of

Slow process of

development and

implementation of regional

energy projects

Capacity building provided to

the WAPP in the context of

the CLSG interconnection

project

Efficient implementation of the

WAPP priority projects

Training and

consultancy services

provided to WAPP

Improvement in

implementation of

WAPP priority

projects

Côte d’Ivoire-Liberia-

Sierra Leone-Guinée,

Interconnexion Power

Project.

(vii) Support to Regional Centers of Excellence

Weak regional capacity to

undertake research and

copy/adapt/develop

science and technology;

Absence of regional SPS

standards;

Lack of harmonized

regional systems;

Skills shortage for

implementation of regional

projects.

Support provided to

strengthen ECOWAS

identified centers of

excellence.

Use of science and technology to

develop other sectors, social

infrastructure, industry,

environment and climate change,

makes progress in ECOWAS;

Strengthened culture of science and

technology in the region;

Agents of regional integration

trained with shared approach on

integration;

Enhanced capacity in technological

skills for economic transformation.

Idem as final

outputs.

Idem as final

outcomes.

Regional Centres of

Excellence dealing with

infrastructure and public

governance.

(viii) Statistical support to ECOWAS Institutions

Weak institutional

structure and capacity in

West Africa to meet the

regional statistical

responsibilities.

Weak sex and age

disaggregated data

collection system/capacity

Support provided to national

and regional statistical

structures in line with the

Bank Group’s Program for

Building Statistical Capacity

in RMCs.

See Bank Group’s Program for

Building Statistical Capacity in

RMCs.

Bank Group’s

Program for

Building Statistical

Capacity in RMCs.

Bank Group’s

Program for Building

Statistical Capacity in

RMCs

Bank Group’s Program

for Building Statistical

Capacity in RMCs.

XIX

Annex 12: Alignment Between CSP And WA-RISP Pillars

Co

un

try

CSP Pillars

RISP RI-

related

national

portfolio

projects

Pillar 1 Pillar 2

Infrastructure

development

Capacity

building

Ben

in

(20

12

-201

6)

Pillar 1: Production and Competitiveness Support Infrastructure: (i) the

development of agricultural production infrastructure (ii) infrastructure

consolidation to boost competitiveness and ensure greater integration

4/12 Pillar 2: Enhancement of Good Governance: (i) the improvement of public

resource mobilisation; (ii) consolidation of public expenditure efficiency (iii)

capacity-building to ensure adequate implementation of policies on gender

promotion and adaptation to climate change; and (iv) improvement of the business

environment

Bu

rkin

a F

aso

(20

12

-201

6)

Pillar 1: Developing infrastructure and trade facilitation, strengthening the

competitiveness of the private sector as an engine of growth

3/15 Pillar 2: Strengthening the fiduciary framework and management of public

finances, improving the business environment and private sector development,

strengthening macroeconomic reform, developing promising sectors, and raising

the level of inclusion of public policies for solidarity

Cab

o V

erd

e

(20

14

-201

8)

Pillar 1: Enhancing and Diversifying Infrastructure for Sustainable Development.

(sea ports construction and rehabilitation, strengthening the electricity production

and network, supporting investments in renewable energy)

2/8 Pillar 2: Strengthening Economic Governance in the Public and Private Sectors

(enhancing the overall business and investment climate, promoting public

investment program prioritization and rationalization, improving and modernizing

the management and operations of state-owned enterprises (SOEs)

Cô

te d

’Iv

oir

e

(20

13

-201

7)

Pillar 1: Strengthening Governance and Accountability (creating an environment

that will foster socio-economic inclusion and address demands for improved

governance)

2/10 Pillar 2: Infrastructure Development in support of Economic Recovery (promote

the optimal use of natural resources through the development of high quality

infrastructure in the agriculture, transport and energy sectors, in order to bolster

economic recovery)

Gam

bia

(20

12

-

20

15)

Pillar 1: Enhancing Productive Capacity and Competitiveness in order to

Strengthen Resilience to External Shocks

2/8 Pillar 2: Strengthening the Institutional Capacity for Economic Governance and

Public Service Delivery

Gh

ana

(20

12

-20

16

) Pillar 1: Improving productivity in Ghanaian enterprises and in particular in the

micro, small and medium agribusiness firms. (investing in infrastructure that

supports the growth and development of the private sector and improving skills,

thereby supporting government’s efforts towards strengthening the productive

environment in Ghanaian enterprises)

7/22

Pillar 2: Supporting economic and structural reforms aimed at improving the

business environment (supporting key economic policy-oriented and oversight

institutions)

Gu

inea

(20

12

-201

6) Pillar 1: economic and financial governance (building public finance management

capacity, improving governance in the extractive sector and strengthening the

central government’s budget)

1/7

Pillar 2: development supportive infrastructure (reducing the power generation

gap and developing transport infrastructure )

Gu

ine

a-

Bis

sa

u

(20

14

-

20

18) Pillar 1: Strengthening institutional capabilities and governance (institutional

support; targeted budget support; business climate)

0/9

XX

Pillar 2: Support infrastructure for the internal and external opening up of the

country (including transport and energy)

Lib

eria

(20

13

-201

7)

Pillar 1: Promoting inclusive economic growth through transformative

infrastructure investments (focusing on energy and road infrastructure, promoting a

competitive private sector, agricultural production and

market access, employment creation across age and gender, welfare and public

service delivery)

3/13

Pillar 2: Enhancing governance and the efficient management of resources

Mal

i (T

ran

siti

on

Su

pp

ort

20

13

-14) Outcome 1: Mitigate the impact of the crisis and strengthen the resilience of the

population

3/12 Outcome 2: Consolidate the State's stability and the foundations for economic

recovery

Nig

er

(20

13

-201

7)

Pillar 1: strengthening resilience to food insecurity (by supporting the

development of anchor infrastructure focusing on water control and management,

transport, and energy)

3/18 Pillar 2: strengthening governance, particularly of natural resources (strengthening

the governance framework to enable the country to take full advantage of its

natural resources, ensure sustainable exploitation of these resources, promote and

maintain macroeconomic stability and create an enabling environment for private

investment)

Nig

eria

(20

13

-201

7) Pillar 1: Supporting the Development of a Sound Policy Environment

8/29 Pillar 2: Investing in Critical Infrastructure to Promote the Development of the

Real Sector of the Economy

Sen

egal

(20

10

-

20

15

) –

rev

iew

ed

in 2

012

Pillar 1: support for inclusive growth through diversification and economic

integration

3/9 Pillar 2: sustainable management of natural resources (including water) and

resilience.

Sie

rra

Leo

ne

(20

13

-201

7)

Pillar 1: Enhancing Economic Governance and Transparent Management of

Natural Resources Revenue (promote the transparent management of natural

resource revenues)

1/10 Pillar 2: Supporting Transformational and Sustainable Infrastructure Development

(in energy, roads and water will facilitate inclusive green growth, foster regional

integration and enhance private sector development and competitiveness)

To

go

(20

11

-201

5)

Pillar 1: development of economic infrastructure capable of effectively connecting

the economic zones within Togo, and connecting the Togolese economy to the

regional economic space

1/6 Pillar 2: the promotion of economic and financial governance reforms